UAE fz / Dubai freelance - corp tax?

[gnud]

Hey everyone.

By now UAE fz CT regulations should be well clarified. So how is it with the corporate tax and fz freelancers doing business with companies outside of the UAE? I keep finding old articles from the last year on google saying freelancers have an obligation to pay the corporate tax if their income is over 375k AED. Is it true? Aren't fz freelancers who don't do business with the mainland exempt?

 

[Don]

The new 9% corporate tax applies to individuals based in the UAE who offer consultancy, freelance, or other business services to local and international businesses and generate an annual income of AED 1 million or more with at least Dh375,000 profits on that income. Under UAE corporate tax, the 9 per cent applies to those businesses that exceed Dh375,000 in profit over a year. That means a freelancer will be able to benefit from the 0 per cent rate on the first Dh375,000 of taxable income.

 

[gnud]

The new 9% corporate tax applies to individuals based in the UAE who offer consultancy, freelance, or other business services to local and international businesses and generate an annual income of AED 1 million or more with at least Dh375,000 profits on that income. Under UAE corporate tax, the 9 per cent applies to those businesses that exceed Dh375,000 in profit over a year. That means a freelancer will be able to benefit from the 0 per cent rate on the first Dh375,000 of taxable income.

Thanks! So there's no exemption if the freelancer does business only with companies outside of the UAE?

 

[Don]

Thanks! So there's no exemption if the freelancer does business only with companies outside of the UAE?

Yes.., there is no exemption.. however, you can possibly apply for small business relief to get an exemption of up to 3M AED (until the end of 2026).

An unincorporated partnership structure can be interesting since below 1M AED/year is exempt from any registration in UAE.