Are dividends subject to corporate tax in the UAE?

Dividends and other profit distributions received by a UAE resident company from another UAE company are generally exempt from UAE corporate tax. In addition, dividends and capital gains from a qualifying shareholding in a foreign company can be exempt under the participation exemption, provided the relevant conditions (such as a minimum ownership level and holding period and a sufficient tax presence of the subsidiary) are met. These exemptions are designed to avoid taxing the same profits twice as they move up a group. For individuals, dividends received from personal investments are typically outside the scope of corporate tax, as personal investment income is generally excluded. The detailed conditions for the participation exemption — including ownership percentages and holding periods — are set by the corporate tax law and its decisions, so they should be confirmed against the current text. Because eligibility depends on your structure and the nature of the shareholding, confirm whether a specific dividend is exempt with the Federal Tax Authority or a qualified UAE tax adviser. Verified UAE legal professionals are listed on LEXAI.