UAE Zakat and Religious Levies Reference 2026 — Who Pays What
UAE has specific rules on Zakat (Islamic wealth tax). Here is the 2026 reference guide for UAE free zone companies on Zakat obligations.
In this guide:
UAE Zakat — Overview
- Zakat: Islamic obligatory charitable contribution; 2.5% of qualifying wealth above nisab (minimum threshold)
- UAE Zakat: UAE government requires Zakat from eligible UAE national-owned companies; foreign-owned free zone companies are generally not subject to Zakat
Who Pays UAE Zakat
- UAE national individuals: May pay Zakat personally on qualifying wealth (personal religious obligation)
- UAE national-owned companies: Companies owned by UAE nationals may have Zakat obligation
- Foreign-owned companies: Free zone companies owned by non-UAE nationals are NOT subject to UAE Zakat
CT and Zakat Interaction
- Tax vs. religious obligation: Zakat is a religious obligation; CT is a tax
- UAE CT: All businesses (including UAE national-owned) are subject to UAE CT
- Zakat credit: UAE may allow Zakat paid to be credited against CT liability; consult adviser for latest rules
Foreign Entrepreneur Zakat
- Personal Zakat: Foreign Muslim entrepreneurs may pay Zakat personally as a religious obligation; this is personal and not enforced by UAE tax authorities
- Company Zakat: UAE authorities do not impose Zakat on foreign-owned UAE free zone companies