Get To Know About Municipality Tax In Abu Dhabi

Get To Know About Municipality Tax In Abu Dhabi

What is municipality tax? 

The municipality tax was originally announced in February 2016. This is your annual rental property tax. The municipality tax is calculated as 5% of your rental contract’s value for all premises, with a minimum amount to pay of AED 450 per annum. Although the total fee applies from the first day of the rental contract, the annual fees are broken down into monthly instalments to make your payments easier. You’ll receive a municipality fees bill each month, in addition to your water and electricity bills. ADDC (Abu Dhabi Distribution Company) collects municipality tax on behalf of the Department of Municipal Affairs and Transport.

Municipality Fee Bill from ADDC

The 5% is the current percentage of the tax (2019) for both Apartment and Villa. Previously it was 3% for Apartment and 5% for villa. Although the current rental cost drop, the tax that residents have to pay is still higher than the previous year.

The tenants will be registered automatically for the fees when they register their tenancy contract with Tawtheeq, rental agreement from Department of Municipality Affairs and Transport.

How To Calculate Your Municipality Tax

Your annual rental x 5% ÷ 12

If your annual rental is 100.000 dhs

Your tax will be 100.000 x 5% ÷12 =416.67 per month

How to pay

There are a number of easy ways to pay your bill for municipality fees. If you’ve set up your online account with ADDC, it only takes a minute to use our secure online payment facility and it’s even quicker if you’ve already stored your card details. Alternatively, you can pay by bank transfer, credit card, cash or cheque at any of our Customer Service Centres, with options to use selected ATM machines, banks or exchanges. To check your balance, simply SMS your account number to 2800. 

Your water and electricity services may be disrupted if you don’t settle your municipality fees by the due date and you could be charged a reconnection fee if you are disconnected due to non-payment.