Looking to hire in United Arab Emirates

Employees must submit current-year expenses within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later. Prior-year expenses are not accepted after February 1 of the following year.

Phone and internet subscriptions, as well as coworking costs, can be reimbursed tax-free when they are business-related. For each claim, you must provide a tax invoice or receipt, or for amounts up to AED 1,000 a bank statement with transaction details, showing the date, amount, currency, merchant or service provider, a short description of the service, and any VAT amount if incurred in the UAE.

Laptops, office equipment and supplies, software subscriptions, and postal charges are reimbursed on a non-taxable basis when used for business. Claims must be supported by a tax invoice or receipt, or for amounts up to AED 1,000 a bank statement with transaction details, showing the date, amount, currency, merchant or service provider, a brief description of the purchase (including brand and model for laptops), and any VAT amount if incurred in the UAE; postal charges incurred in the UAE must include required details, except for certain government charges.

Business travel expenses such as insurance, visas, accommodation, flights (including luggage fees), taxis or rideshares, trains, public transport, car rental, fuel, mileage, and parking or tolls are reimbursed as non-taxable when incurred for work. Most travel costs require a tax invoice or receipt, or for amounts up to AED 1,000 a bank statement with transaction details, showing the date, amount, currency, merchant or service provider, a short description where relevant, and any VAT amount if incurred in the UAE; some items, such as accommodation, flights, and certain insurances, must also show the employee’s name, and parking or toll charges above USD 100 must include a description of the purchase or service. Mileage is reimbursed on a non-taxable basis at AED 3.6 per km with no documentation required.

Everyday meals, groceries, and business meals with clients or partners can be reimbursed tax-free when they are for business purposes. Each claim must be supported by a tax invoice or receipt, or for amounts up to AED 1,000 a bank statement with transaction details, showing the date, amount, currency, merchant or service provider, a brief description of the purchase, and any VAT amount if incurred in the UAE.

A range of other business-related costs, including training, courses and books, promotional items, gym memberships, medical and life insurance, wellness expenses, medical costs, and gifts given, are reimbursed on a non-taxable basis. These generally require a tax invoice or receipt, or for amounts up to AED 1,000 a bank statement with transaction details, showing the date, amount, currency, merchant or service provider, a short description of the purchase, and any VAT amount if incurred in the UAE; some items, such as trainings, gym memberships, medical and life insurance, and wellness benefits, must also show the employee’s name. Gifts received are non-taxable and do not require documentation.

In the United Arab Emirates, employers may choose to pay a per diem instead of reimbursing individual travel costs such as taxis, fuel, meals, and incidental expenses. There is no fixed statutory per diem amount, but any per diem must be reasonable, is discretionary, and where it is used to cover certain travel expenses, those same expenses cannot also be submitted for reimbursement; per diems are treated as non-taxable allowances for documentation purposes. Per diem claims must state the travel dates, destination, which expenses the per diem covers, and the business purpose of the trip.

Bonuses in the United Arab Emirates include contractual and discretionary payments such as incentives and commissions. All employee bonuses are untaxed.