UAE self-employed Corporate Tax calculator (natural person)
UAE self-employed Corporate Tax calculator (natural person)A UAE freelancer or sole trader pays no Corporate Tax until business turnover exceeds AED 1,000,000 in a calendar year. Above that, taxable income is taxed at 0% up to AED 375,000 and 9% above — unless the business elects Small Business Relief, available with revenue within AED 3,000,000 until 31 December 2029.
Worked example · Net income after Corporate Tax
With Business turnover this calendar year of 2,500,000, this model computes Net income after Corporate Tax of 900,000 AED. See the full working.
✓ Verified against 5 self-test cases Updated for 2026 · sources checked 2026-10-12
How freelancer corporate tax in UAE is calculated
There is no personal income tax in the UAE, but an individual running a business can still owe **Corporate Tax**. Cabinet Decision 49 of 2023 draws the line at **AED 1,000,000 of business turnover in a calendar year**: below it, nothing; above it, the business is a taxable person. Wages, personal investment income and real-estate investment income never count, whatever their size.
Once in scope, taxable income is charged at **0% up to AED 375,000 and 9% above**. A freelancer with AED 900,000 of profit and no relief pays 9% of AED 525,000 — AED 47,250.
**Small Business Relief** changes that. A resident person whose revenue stays within AED 3,000,000 in the tax period and every previous one can elect to be treated as having no taxable income. It was due to end with 2026; Ministerial Decision 131 of 2026 extended it to tax periods ending on or before **31 December 2029**. Registration and filing still apply. Estimate, not tax advice.
Worked example
ShowHide the full working: 3 inputs, 5 computed steps
| Inputs | |
|---|---|
| Business turnover this calendar year (AED) | 2,500,000 |
| Business profit (taxable income) | 900,000 AED |
| Elect Small Business Relief | yes |
| Computed by the engine | |
| Subject to Corporate Tax (turnover over AED 1m) ✓ pinned | yes |
| Small Business Relief available (revenue within AED 3m) ✓ pinned | yes |
| Taxable income ✓ pinned | 0 AED |
| Corporate Tax ✓ pinned | 0 AED |
| Net income after Corporate Tax ✓ pinned | 900,000 AED |
Every computed row comes from the engine, run on the inputs above. Rows marked ✓ pinned are also fixed by a published self-test, so a change to the model that moved them would fail its own tests.
Frequently asked questions
Do freelancers pay corporate tax in the UAE?
Only once business turnover exceeds AED 1,000,000 in a calendar year. Below that an individual’s business is not subject to Corporate Tax at all.
What is the corporate tax rate for an individual business in the UAE?
0% on taxable income up to AED 375,000 and 9% on the amount above it.
Has Small Business Relief been extended?
Yes. Ministerial Decision 131 of 2026, announced on 7 August 2026, extended it from tax periods ending by 31 December 2026 to those ending by 31 December 2029. The AED 3 million revenue threshold is unchanged.
Does salary count towards the AED 1 million test?
No. Wages, personal investment income and real-estate investment income are excluded from the turnover test regardless of amount.
Sources
- Cabinet Decision No. 49 of 2023, art. 2 — a natural person’s business is subject to Corporate Tax only where turnover exceeds AED 1,000,000 in a Gregorian calendar year · checked 2026-10-12
- Federal Decree-Law No. 47 of 2022, art. 3 (9% above the Cabinet threshold) and Cabinet Decision No. 116 of 2022, art. 2 (0% on taxable income up to AED 375,000) · checked 2026-10-12
- Ministry of Finance, 7 August 2026 — Ministerial Decision No. 131 of 2026 extends the AED 3 million Small Business Relief threshold (Ministerial Decision No. 73 of 2023) to tax periods ending on or before 31 December 2029 · checked 2026-10-12
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (English translation), arts. 3 and 21 · checked 2026-10-12
Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 5 self-test cases; the sources support that the formula matches the rules.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 5 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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