Many freelancers in the UAE assume Corporate Tax is only for companies. In fact, an individual who runs a business can also be subject to it.

The AED 1 million turnover test

A natural person becomes subject to Corporate Tax when the turnover from their business activities exceeds AED 1 million in a calendar year. Turnover means total business income, not profit.

Income that does not count towards this test includes:

• Employment salary
• Personal investment income, such as dividends or interest from personal savings
• Qualifying real estate investment income held personally

What happens once you cross it

• You must register for Corporate Tax with the FTA. For individuals the registration deadline is 31 March of the following year.
• Your tax period is the calendar year, and the return is due within 9 months after it ends.
• Tax is 0% on the first AED 375,000 of taxable income and 9% above that.

Keep it simple

Separate your business bank account from personal spending, keep every invoice and expense receipt, and track your turnover month by month so you know early if you are getting close to AED 1 million.

Read more: UAE Corporate Tax rates explained.

---

Questions about your situation? Message us on WhatsApp or book a consultation. Fixed fees agreed upfront.

General information only, not advice for your specific situation.