The UAE has no personal income tax on salaries. But many employees also run a side business, and that income follows different rules.

Your salary

Employment income is not subject to Corporate Tax and is not counted in the AED 1 million turnover test.

Your side business

• If your business turnover exceeds AED 1 million in a calendar year, you must register for Corporate Tax and file an annual return.
• Separately, if your taxable supplies exceed AED 375,000, you must register for VAT.
• Both tests are checked independently.

Practical steps

• Keep your business income and expenses separate from your salary account.
• Track your business turnover every month.
• Make sure your activity is properly licensed, as tax registration requires a licence or permit.

If you are close to either threshold, plan ahead so you register on time and avoid penalties.

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General information only, not advice for your specific situation.