Freelancer personal tax position
I freelance on the side while employed. What UAE tax applies?
The situation
Your salary is not taxed. Freelance business income becomes subject to Corporate Tax only if turnover passes AED 1 million in a calendar year. VAT starts at AED 375,000 of taxable supplies.
The law
- Cabinet Decision 49 of 2023: AED 1 million business turnover test
- Art 13, Federal Decree-Law 8 of 2017: VAT registration threshold
What it means for you
Check your employment contract and licence rules for side work. Example: AED 200,000 of freelance fees needs no Corporate Tax or VAT registration, but you still need the right permit to freelance.
What to do
- Check your contract allows side work.
- Get a freelance permit.
- Track turnover.
- Register for VAT or Corporate Tax only when thresholds are passed.
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