Corporate · Concept
Dividend
A distribution of profits from a company to its shareholders, typically out of post-tax retained earnings.
In practice
Dividends from UAE Corporate Tax-paying entities are not subject to further UAE tax at the entity level. The UAE Participation Exemption removes UAE tax on dividends received from qualifying subsidiaries (≥5% holding, 12+ month period, certain conditions). Shareholders in their home countries may be taxed on dividends received.