UAE Corporate Tax for Freelancers: The Simple Version
The UAE introduced corporate tax (CT) in June 2023 under Federal Decree-Law No. 47 of 2022. Here's what freelancers and small business owners need to know:
- 0% CT on taxable income up to AED 375,000 per year
- 9% CT on taxable income above AED 375,000 per year
- Free zone companies that meet qualifying criteria can remain at 0% CT
- No personal income tax — this only applies to businesses, not salaries
Who Needs to Register?
All UAE businesses — including freelancers with a trade licence — must register with the Federal Tax Authority for Corporate Tax purposes. Even if your income is below the threshold, registration is required.
Frequently Asked Questions
If you operate as a sole establishment or freelancer with a UAE trade licence, you are subject to UAE corporate tax rules. However, if your taxable income is below AED 375,000/year, the rate is 0%. You still need to register with the Federal Tax Authority.
Mandatory VAT registration is required if your taxable turnover exceeds AED 375,000 in any 12-month period. Voluntary registration is available above AED 187,500. The VAT rate is 5%.