UAE freelancers (designers, developers, consultants, creators, coaches) often ask the same question: does Corporate Tax apply to me? For most, the answer depends on one number: AED 1 million.
First: are you a person or a company?
| How you work | Corporate Tax rule |
|---|---|
| As an individual (freelance permit, sole establishment, or simply self-employed) | Only within Corporate Tax once business turnover exceeds AED 1 million in a calendar year |
| Through a company (for example an FZ-LLC or LLC) | The company must register within three months of incorporation, whatever its turnover |
If you have a company, read Corporate Tax Registration Deadline UAE and, for free-zone companies, Corporate Tax for Free Zone Companies. The rest of this guide is about freelancers working as individuals.
The AED 1 million turnover test
As an individual, you are subject to Corporate Tax only if your business turnover exceeds AED 1 million in a calendar year (January to December). Turnover means your total business income before expenses, not profit.
What counts
- Freelance and consulting fees
- Income from selling products or services
- Brand deals, sponsorships and platform income from your business activity
What doesn't count
- Salary from employment
- Personal investment income, such as dividends or gains on personal investments
- Personal real estate investment income, such as rent from property you own as an individual (unless it requires a licence)
Registration and filing deadlines
For a resident freelancer whose business turnover exceeds AED 1 million in a calendar year:
| Turnover exceeds AED 1m in | Register by | File return and pay by |
|---|---|---|
| 2026 | 31 March 2027 | 30 September 2027 |
| 2027 | 31 March 2028 | 30 September 2028 |
Your tax period is the calendar year. Late registration costs AED 10,000. Once registered, keep filing each year, even a nil return if your turnover later falls below AED 1 million.
How much tax will you pay?
- 0% on the first AED 375,000 of taxable income (profit after allowable expenses)
- 9% on taxable income above AED 375,000
Example: turnover AED 1.4 million, business expenses AED 500,000, taxable income AED 900,000. Tax = (900,000 − 375,000) × 9% = AED 47,250.
Try your own numbers in the Corporate Tax calculator.
Small Business Relief for freelancers
If your revenue is AED 3 million or less, and has been in every previous tax period, you can elect Small Business Relief and be treated as having no taxable income. It's available for tax periods ending on or before 31 December 2029. In the example above (AED 1.4 million revenue), electing the relief would reduce the tax from AED 47,250 to zero.
What about VAT?
VAT is separate. It has its own thresholds (mandatory registration once taxable supplies exceed AED 375,000), so many freelancers must register for VAT long before Corporate Tax applies. Services to clients outside the UAE are often zero-rated. See the VAT registration threshold.
Records freelancers should keep
- A separate bank account for business income and expenses
- Every invoice you issue and every business receipt
- Contracts with clients, especially overseas clients
- A monthly total of turnover, so you know when you approach AED 1 million (and AED 375,000 for VAT)
Our free bookkeeping Excel template is a simple way to start.
Freelancer accounting made simple
We keep simple books, check whether Corporate Tax and VAT apply to you, and file your returns on time.