Freelance income and Corporate Tax
I earn freelance income on a green visa. Do I pay Corporate Tax?
The situation
Natural persons doing business are within Corporate Tax only when their business turnover in a calendar year passes AED 1 million. Salary and personal investment income are outside it.
The law
- Cabinet Decision 49 of 2023 on taxable natural persons: Business turnover above AED 1 million in a Gregorian year triggers Corporate Tax
- Art 11, Federal Decree-Law 47 of 2022: Natural person doing business in the UAE is a resident person
What it means for you
Example: a freelancer with AED 750,000 turnover in 2026 has no Corporate Tax obligation for 2026. If turnover reaches AED 1.2 million, registration is needed, and Small Business Relief may still give no taxable income if revenue stays within AED 3 million. VAT is separate and starts at AED 375,000 of taxable supplies.
What to do
- Total your business turnover for the calendar year.
- If above AED 1 million, register for Corporate Tax.
- Check VAT registration at AED 375,000.
- Keep invoices and expense records.
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