The United Arab Emirates is a federation of seven Emirates, with autonomous federal and local governments. The UAE has historically been a low-tax jurisdiction. The federal government and local governments are entitled to levy taxes on citizens and companies.
The federal government currently levies a value added tax [similar to sales tax] , corporate income tax, and excise taxes [duties upon goods].
Some emirates levy property, transfer, excise and tourism taxes. Some emirates also charge corporate taxes on oil companies and foreign banks.
The current standard [federal] VAT rate in the country is 5%. The standard rate of corporate tax is 9%, some exempt businesses and those with net annual profits under AED375,000 (US$102,100) qualify for a rate of 0%, and that fall under the criteria of the global minimum corporate tax rate agreement are charged a corporate tax rate of 15%.
Free zone businesses can get exempt from corporate tax as long as they do not do business with the UAE mainland and follow other UAE guidelines.
The federal government also levies excise taxes on alcohol, energy drinks, vaping liquids and devices, and cigarettes.
(extracted from Wikipedia)