# Do freelancers pay corporate tax in the UAE?

> A UAE freelancer or sole establishment owner is subject to corporate tax only if their business turnover exceeds AED 1 million in a calendar year. Salary, personal investment income and personal real estate income do not count. If you pass the threshold, register by 31 March of the following year; with turnover under AED 3 million you can usually elect Small Business Relief and pay nothing.

Interactive calculator: https://www.countify.ae/tools/freelancer-corporate-tax-checker · Updated 2026-10-14 · Countify UAE

## Freelancers and sole establishments

Profit at 50% of turnover; calendar year 2026.

| Turnover | Subject to corporate tax | Corporate tax at standard rates | If you elect Small Business Relief |
| --- | --- | --- | --- |
| AED 800,000 | No | AED 0.00 | AED 0.00 |
| AED 1,300,000 | Yes | AED 24,750.00 | AED 0.00 |
| AED 2,800,000 | Yes | AED 92,250.00 | AED 0.00 |
| AED 4,000,000 | Yes | AED 146,250.00 | AED 146,250.00 |

Above AED 3 million, Small Business Relief no longer applies.

## The AED 1 million test

Cabinet Decision No. 49 of 2023 brings individuals into corporate tax only when the total turnover of their business activities in the UAE exceeds AED 1 million in a Gregorian calendar year. Each year is tested separately, and a sole establishment is treated as the same person as its owner.

## If you are in scope

Register on EmaraTax by 31 March of the following year, keep business records, and file a return for the calendar year within 9 months (by 30 September). Profit up to AED 375,000 is taxed at 0%. Our [freelancer corporate tax guide](https://www.countify.ae/blog/corporate-tax-freelancers-uae) has worked examples.

## Legal basis

- Cabinet Decision No. 49 of 2023 on natural persons conducting business (https://mof.gov.ae/corporate-tax/)

## Frequently asked questions

### Do freelancers need to register for corporate tax in the UAE?

Only if their business turnover exceeds AED 1 million in a calendar year.

### Does my salary count towards AED 1 million?

No. Employment income, personal investment income and personal real estate income are excluded.

### Do freelancers need VAT registration?

Separately, yes if taxable supplies exceed AED 375,000 in 12 months. Use the [VAT registration checker](https://www.countify.ae/tools/vat-registration-checker).