|Private Employer’s Contribution||12.5% of basic salary and allowances||12.5% of basic salary and allowances|
|Public Employer’s Contribution||15 % of basic salary and allowances||15 % of basic salary and allowances|
|Employee’s Contribution||5% of basic salary and allowances||5% of basic salary and allowances|
Social security contribution would not be relevant to International assignees travelling to UAE.
The zakat (an Islamic tax on property and income) is not officially levied in the UAE. There are municipal taxes on rentals which are levied by few of the individual emirates which are discussed below. A 5 percent tax is also imposed on hotel services and entertainment and there are sundry small taxes, such as carrier tax, on cinema tickets, and so on.e not available in the public domain.
There is currently no sales tax or VAT on any goods or services except for sales tax on alcohol. However, the UAE, along with the other GCC countries is actively considering the introduction of VAT in the near future the timelines of which are not available in the public domain.
With effect from 1 January 2003, the countries of the Gulf Cooperation Council (GCC) formed the GCC Customs Union which uniformly imposed 5 percent duty on the majority of goods entering the GCC.
This duty is charged at the first point of entry into the GCC and the goods on which the duty has been paid may then move freely between member states without payment of any further duty.
The GCC countries include the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain.
Some of the emirates levy municipal taxes on rentals and on hotel services. Various municipal taxes are listed below:
Municipal tax on Rentals
Municipal tax and service charge on Hotels
The UAE Ministry of Labour (MOL) has recently introduced a system for payment of wages by companies registered with them. The system known as Wage Protection System (WPS), allows MOL to create a database that records wage payments in the private sector to guarantee timely and full payment of wages. All the companies in the UAE are mandated to implement the WPS except for companies located in the Free Trade Zones in the UAE.
Under the WPS, all salaries and wages for employees must only be paid from a local bank account and in the local currency such as UAE Dirham (AED). The companies that default from adhering to WPS will not be eligible for new work permits.
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