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.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
Freelance, consulting or licensed sole establishment income. Leave out salary, personal investment income and personal property rent.
- Subject to corporate tax
- Yes
- Register by
- 31 March 2027
- Corporate tax at standard rates
- AED 29,250.00
- If you elect Small Business Relief
- AED 0.00
Your business turnover is over AED 1 million, so you must register for corporate tax and file a return for the calendar year.
Turnover is under AED 3 million, so you can elect Small Business Relief and pay nothing, while still filing.
Results are estimates for general information, not tailored advice.
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 has worked examples.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
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.
Corporate tax registration and returns
We register you, prepare the tax computation and file your corporate tax return, with Small Business Relief, QFZP and loss elections handled correctly.