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GPSSA (General Pension and Social Security Authority) is the federal pension fund for UAE nationals working in the government and private sectors in every emirate except Abu Dhabi (which has its own Abu Dhabi Pension Fund). Important: this system covers UAE nationals only — foreign employees do not receive a pension, they receive an end-of-service gratuity instead. Since 31 October 2023, two regimes apply in parallel: the old regime (Federal Law No. 7 of 1999, 20% contributions) for those registered with GPSSA before that date, and the new regime (Federal Decree-Law No. 57 of 2023, 26% contributions) for anyone entering the UAE workforce for the first time on or after that date.

On 1 January 2018, the UAE introduced Value Added Tax (VAT) — a consumption-based indirect tax ultimately borne by end consumers, with businesses acting as its collectors on behalf of the government. The introduction of VAT was part of the UAE's economic diversification strategy under the GCC Unified VAT Agreement.

The most underestimated tax and technological topic in the UAE as of April 2026 is not a new tax rate, but mandatory electronic invoicing.

Mandatory audit in the UAE typically follows from three independent sources of obligation: Federal Decree-Law No. 32 of 2021 (Commercial Companies Law) for mainland companies, PJSCs, and PrJSCs; the internal rules of the specific free zone for licence renewal; and Ministerial Decision No. 84 of 2025 for Corporate Tax purposes. An audit is mandatory for Qualifying Free Zone Persons (regardless of revenue), for any taxable person with revenue exceeding AED 50 million in the tax period, for all Tax Groups, and for most companies in major free zones (DMCC, JAFZA, DIFC, ADGM, and others) — independently of the tax rules, as a condition of licence renewal.

Three key distinctions make UAE payroll fundamentally different from most countries.