The UAE does not levy personal income tax, which is a major attraction for expatriates and businesses. However, the country introduced a 5% Value Added Tax (VAT) in January 2018 on most goods and services. In June 2023, the UAE also introduced a 9% corporate tax on business profits exceeding AED 375,000, though free zone companies meeting certain conditions remain exempt. There is no capital gains tax, no withholding tax, and no property tax (though property transaction fees apply). Municipal fees are levied on rental contracts in some emirates.