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Is Gratuity Taxable in UAE?

UAE gratuity tax status. Is end-of-service gratuity subject to income tax or other taxes?

2 min read

✅ Reviewed by MOHRE-certified HR specialists. Accurate as of UAE Labour Law 2025 (Federal Decree-Law No. 33/2021).

Is Gratuity Taxable in UAE?

Bottom Line for UAE

Gratuity is NOT taxed in UAE
You receive 100% of amount owed
Your home country may tax it (check local laws)

What You Receive

If owed AED 10,000 gratuity:

  • In UAE: You receive AED 10,000 (no tax)
  • Home country: May owe tax on it (varies by country)

Tip for Expats

When moving abroad with gratuity:

  • Keep proof of UAE gratuity payment (receipt, bank transfer)
  • Declare to home country if required
  • Consult home country tax professional
  • UAE won't tax it—that's certain

For an instant end-of-service estimate, use our online gratuity calculator UAE.

Calculate Your Gratuity

Know how much you'll receive (100% of your calculated amount in UAE).


UAE: Tax-free gratuity! Check your home country though.

Gratuity Calculator UAE Editorial Team - Content Research & Verification

Gratuity Calculator UAE Editorial Team

Verified Expert

Content Research & Verification

MOHRE-Verified Content Specialists

Dedicated team of HR professionals, legal advisors, and content specialists committed to providing accurate, up-to-date information on UAE labour law and gratuity entitlements.

Verified Content

Published: 5 November 2025

Note: All information is verified against official MOHRE regulations and UAE Labour Law (Federal Decree-Law No. 33/2021). For specific legal advice, consult a licensed employment attorney or contact MOHRE directly at 16000.

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LEGAL
Legal Disclaimer: This content is for informational purposes only and reflects MOHRE regulations as of 2025. For specific legal advice or disputes, please consult with an employment lawyer or contact MOHRE directly at 16000 (within UAE).