Iran–United Arab Emirates relations Iran–United Arab Emirates relations Relations between the neighboring countries of Iran and the United Arab Emirates (UAE) are deeply historic, dating back centuries prior to the establishment of the modern-day United Arab Emirates. Both the countries maintain diplomatic relations with each other, having embassies in each other's capitals, and have close economic ties. There is a significant community of Iranians in the United Arab Emirates, mostly residing in the emirate of Dubai. An Arabic-speaking native community lives in the southern provinces of Iran, some of whose members share historical ties with the southern shores of the Persian Gulf. Iranian businesses
Taxation in the United Arab Emirates Taxation in the United Arab Emirates The United Arab Emirates is a federation of seven emirates, with autonomous emirate and local governments. The United Arab Emirates does not have any federal income tax. An income tax decree has been enacted by each Emirate, but in practice, the enforcement of these decrees is restricted to foreign banks and to oil companies. The UAE government implemented value added tax (VAT) in the country from January 1, 2018 at a standard rate of 5%. Most of the revenues have been generated from oil sales to other countries. UAE is looking to diversify from