The UAE government receives most of its revenue from the oil industry. As a result, individuals currently do not have to pay any personal income tax, sales tax, capital gains tax, corporate tax or other social security contributions. Dubai really is a tax-free haven in the sun. There are no indications that this situation will change in the foreseeable future.
Municipal taxes are, however, currently payable on cigarettes, alcohol, hotel stays, and fees at golf clubs.
Although you won’t be paying tax in Dubai, you may need to pay tax back in your home country. The amount you need to pay, if any, will depend on your country of origin, and your residential status. Be sure to check with the tax authorities at home for the current laws and legal requirements. See the section “Tax Advisers/Accountants” for professionals in Dubai who can help you with these issues.