{
  "$comment": "Machine-readable companion to https://valem.run/calculators/uae/self-employed. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/uae/self-employed",
  "dataUrl": "https://valem.run/calculators/uae/self-employed.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "UAE freelancer corporate tax model by Valem (https://valem.run/calculators/uae/self-employed), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/uae/self-employed/verify",
  "country": "uae",
  "countryName": "UAE",
  "formula": "self-employed",
  "formulaName": "Freelancer corporate tax",
  "title": "Corporate Tax for Freelancers UAE 2026 — the AED 1m test",
  "answer": "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.",
  "lang": "en",
  "currency": "AED",
  "taxYear": "2026",
  "verification": {
    "claim": "internal-consistency",
    "statement": "The Valem engine reproduces this model's stated formula through 5 self-test cases (below, and re-runnable against the spec). That asserts internal consistency, NOT that the formula matches current law — the cited sources are the evidence for that, and carry the date each was last checked.",
    "selfTestCases": 5,
    "ratesAreIllustrative": false,
    "sourcesCheckedOn": "2026-10-12"
  },
  "sources": [
    {
      "label": "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",
      "url": "https://mof.gov.ae/wp-content/uploads/2023/05/Cabinet-Decision-No.-49-of-2023.pdf",
      "checked": "2026-10-12"
    },
    {
      "label": "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)",
      "url": "https://mof.gov.ae/wp-content/uploads/2023/04/Cabinet-Decision-No-116-of-2022-on-the-annual-Taxable-Income-subject-to-Corporate-Tax.pdf",
      "checked": "2026-10-12"
    },
    {
      "label": "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",
      "url": "https://mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/",
      "checked": "2026-10-12"
    },
    {
      "label": "Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (English translation), arts. 3 and 21",
      "url": "https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf",
      "checked": "2026-10-12"
    }
  ],
  "terminalOutput": "netIncome",
  "headlineOutput": "netIncome",
  "inputs": [
    {
      "name": "turnoverAnnual",
      "type": "number",
      "label": "Business turnover this calendar year (AED)",
      "minimum": 0
    },
    {
      "name": "profitAnnual",
      "type": "number",
      "label": "Business profit (taxable income)",
      "format": "currency",
      "minimum": 0
    },
    {
      "name": "electSmallBusinessRelief",
      "type": "boolean",
      "label": "Elect Small Business Relief"
    }
  ],
  "outputs": [
    {
      "name": "subjectToCorporateTax",
      "type": "boolean",
      "label": "Subject to Corporate Tax (turnover over AED 1m)",
      "formula": "turnoverAnnual > $const.naturalPersonTurnoverThreshold"
    },
    {
      "name": "sbrAvailable",
      "type": "boolean",
      "label": "Small Business Relief available (revenue within AED 3m)",
      "formula": "turnoverAnnual <= $const.sbrRevenueThreshold"
    },
    {
      "name": "taxableIncome",
      "type": "number",
      "label": "Taxable income",
      "format": "currency",
      "formula": "(subjectToCorporateTax and $not(electSmallBusinessRelief and sbrAvailable)) ? (profitAnnual > 0 ? profitAnnual : 0) : 0"
    },
    {
      "name": "corporateTax",
      "type": "number",
      "label": "Corporate Tax",
      "format": "currency",
      "formula": "($t := taxableIncome - $const.zeroRateBand; $t > 0 ? $round($t * $const.ctRate, 2) : 0)"
    },
    {
      "name": "netIncome",
      "type": "number",
      "label": "Net income after Corporate Tax",
      "format": "currency",
      "formula": "$round(profitAnnual - corporateTax, 2)"
    }
  ],
  "testCases": [
    {
      "description": "U1 AED 2.5m turnover with Small Business Relief elected: no Corporate Tax",
      "given": {
        "turnoverAnnual": 2500000,
        "profitAnnual": 900000,
        "electSmallBusinessRelief": true
      },
      "expect": {
        "subjectToCorporateTax": true,
        "sbrAvailable": true,
        "taxableIncome": 0,
        "corporateTax": 0,
        "netIncome": 900000
      }
    },
    {
      "description": "U2 the same business without the relief: 9% on AED 525,000",
      "given": {
        "turnoverAnnual": 2500000,
        "profitAnnual": 900000,
        "electSmallBusinessRelief": false
      },
      "expect": {
        "taxableIncome": 900000,
        "corporateTax": 47250,
        "netIncome": 852750
      }
    },
    {
      "description": "U3 AED 5m turnover: above the relief threshold, so tax applies",
      "given": {
        "turnoverAnnual": 5000000,
        "profitAnnual": 1200000,
        "electSmallBusinessRelief": true
      },
      "expect": {
        "sbrAvailable": false,
        "corporateTax": 74250,
        "netIncome": 1125750
      }
    },
    {
      "description": "U4 turnover of exactly AED 1m: not yet subject to Corporate Tax",
      "given": {
        "turnoverAnnual": 1000000,
        "profitAnnual": 700000,
        "electSmallBusinessRelief": false
      },
      "expect": {
        "subjectToCorporateTax": false,
        "corporateTax": 0,
        "netIncome": 700000
      }
    },
    {
      "description": "U5 profit within the AED 375,000 zero-rate band",
      "given": {
        "turnoverAnnual": 4000000,
        "profitAnnual": 300000,
        "electSmallBusinessRelief": false
      },
      "expect": {
        "corporateTax": 0,
        "netIncome": 300000
      }
    }
  ],
  "spec": {
    "id": "self-employed-uae",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "turnoverAnnual": {
          "type": "number",
          "minimum": 0
        },
        "profitAnnual": {
          "type": "number",
          "minimum": 0
        },
        "electSmallBusinessRelief": {
          "type": "boolean"
        },
        "subjectToCorporateTax": {
          "type": "boolean",
          "readOnly": true
        },
        "sbrAvailable": {
          "type": "boolean",
          "readOnly": true
        },
        "taxableIncome": {
          "type": "number",
          "readOnly": true
        },
        "corporateTax": {
          "type": "number",
          "readOnly": true
        },
        "netIncome": {
          "type": "number",
          "readOnly": true
        }
      },
      "required": [
        "turnoverAnnual"
      ]
    },
    "constants": {
      "naturalPersonTurnoverThreshold": 1000000,
      "zeroRateBand": 375000,
      "ctRate": 0.09,
      "sbrRevenueThreshold": 3000000
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{ 'turnoverAnnual': 2500000, 'profitAnnual': 900000, 'electSmallBusinessRelief': true }"
      }
    ],
    "derivations": [
      {
        "path": "$.subjectToCorporateTax",
        "expr": "turnoverAnnual > $const.naturalPersonTurnoverThreshold"
      },
      {
        "path": "$.sbrAvailable",
        "expr": "turnoverAnnual <= $const.sbrRevenueThreshold"
      },
      {
        "path": "$.taxableIncome",
        "expr": "(subjectToCorporateTax and $not(electSmallBusinessRelief and sbrAvailable)) ? (profitAnnual > 0 ? profitAnnual : 0) : 0"
      },
      {
        "path": "$.corporateTax",
        "expr": "($t := taxableIncome - $const.zeroRateBand; $t > 0 ? $round($t * $const.ctRate, 2) : 0)"
      },
      {
        "path": "$.netIncome",
        "expr": "$round(profitAnnual - corporateTax, 2)"
      }
    ],
    "constraints": [],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "Corporate Tax",
          "layout": "vertical",
          "components": [
            {
              "id": "turnover",
              "type": "numericField",
              "label": "Business turnover this calendar year (AED)",
              "bind": "$.turnoverAnnual",
              "helperText": "Gross business revenue. Wages, personal investment income and real-estate investment income do not count towards the AED 1 million test."
            },
            {
              "id": "profit",
              "type": "numericField",
              "label": "Business profit (taxable income)",
              "format": "currency",
              "currency": "AED",
              "bind": "$.profitAnnual"
            },
            {
              "id": "sbr",
              "type": "checkboxField",
              "label": "Elect Small Business Relief",
              "bind": "$.electSmallBusinessRelief",
              "helperText": "Available while revenue in this and every previous tax period stays within AED 3,000,000, for tax periods ending on or before 31 December 2029."
            },
            {
              "id": "tiles",
              "type": "group",
              "layout": "horizontal",
              "components": [
                {
                  "id": "netTile",
                  "type": "statTile",
                  "label": "Net income after Corporate Tax",
                  "bind": "$.netIncome",
                  "format": "currency",
                  "currency": "AED"
                },
                {
                  "id": "ctTile",
                  "type": "statTile",
                  "label": "Corporate Tax",
                  "bind": "$.corporateTax",
                  "format": "currency",
                  "currency": "AED"
                }
              ]
            },
            {
              "id": "breakdown",
              "type": "keyValueList",
              "label": "How that is worked out",
              "items": [
                {
                  "label": "Subject to Corporate Tax (turnover over AED 1m)",
                  "bind": "$.subjectToCorporateTax"
                },
                {
                  "label": "Small Business Relief available (revenue within AED 3m)",
                  "bind": "$.sbrAvailable"
                },
                {
                  "label": "Taxable income",
                  "bind": "$.taxableIncome",
                  "format": "currency",
                  "currency": "AED"
                },
                {
                  "label": "Corporate Tax (0% to AED 375,000, then 9%)",
                  "bind": "$.corporateTax",
                  "format": "currency",
                  "currency": "AED"
                },
                {
                  "label": "Net income",
                  "bind": "$.netIncome",
                  "format": "currency",
                  "currency": "AED"
                }
              ]
            },
            {
              "id": "note",
              "type": "staticText",
              "text": "There is no personal income tax in the UAE. An individual becomes subject to Corporate Tax only when turnover from business activities exceeds AED 1,000,000 in a Gregorian calendar year; wages, personal investment income and real-estate investment income are excluded whatever their amount. Taxable income is then charged at 0% up to AED 375,000 and 9% above. Small Business Relief lets a resident person with revenue within AED 3,000,000 in the period and every previous one be treated as having no taxable income — extended in August 2026 to tax periods ending on or before 31 December 2029. Registration and filing obligations still apply under the relief. Estimate, not tax advice."
            },
            {
              "id": "sources",
              "type": "sourceList",
              "label": "Sources",
              "layers": 3,
              "items": [
                {
                  "label": "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",
                  "url": "https://mof.gov.ae/wp-content/uploads/2023/05/Cabinet-Decision-No.-49-of-2023.pdf",
                  "date": "2026-10-12",
                  "covers": [
                    "naturalPersonTurnoverThreshold"
                  ]
                },
                {
                  "label": "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)",
                  "url": "https://mof.gov.ae/wp-content/uploads/2023/04/Cabinet-Decision-No-116-of-2022-on-the-annual-Taxable-Income-subject-to-Corporate-Tax.pdf",
                  "date": "2026-10-12",
                  "covers": [
                    "zeroRateBand",
                    "ctRate"
                  ]
                },
                {
                  "label": "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",
                  "url": "https://mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/",
                  "date": "2026-10-12",
                  "covers": [
                    "sbrRevenueThreshold"
                  ]
                },
                {
                  "label": "Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (English translation), arts. 3 and 21",
                  "url": "https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf",
                  "date": "2026-10-12",
                  "covers": []
                }
              ]
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "U1 AED 2.5m turnover with Small Business Relief elected: no Corporate Tax",
        "given": {
          "$.turnoverAnnual": 2500000,
          "$.profitAnnual": 900000,
          "$.electSmallBusinessRelief": true
        },
        "expect": {
          "$.subjectToCorporateTax": true,
          "$.sbrAvailable": true,
          "$.taxableIncome": 0,
          "$.corporateTax": 0,
          "$.netIncome": 900000
        }
      },
      {
        "description": "U2 the same business without the relief: 9% on AED 525,000",
        "given": {
          "$.turnoverAnnual": 2500000,
          "$.profitAnnual": 900000,
          "$.electSmallBusinessRelief": false
        },
        "expect": {
          "$.taxableIncome": 900000,
          "$.corporateTax": 47250,
          "$.netIncome": 852750
        }
      },
      {
        "description": "U3 AED 5m turnover: above the relief threshold, so tax applies",
        "given": {
          "$.turnoverAnnual": 5000000,
          "$.profitAnnual": 1200000,
          "$.electSmallBusinessRelief": true
        },
        "expect": {
          "$.sbrAvailable": false,
          "$.corporateTax": 74250,
          "$.netIncome": 1125750
        }
      },
      {
        "description": "U4 turnover of exactly AED 1m: not yet subject to Corporate Tax",
        "given": {
          "$.turnoverAnnual": 1000000,
          "$.profitAnnual": 700000,
          "$.electSmallBusinessRelief": false
        },
        "expect": {
          "$.subjectToCorporateTax": false,
          "$.corporateTax": 0,
          "$.netIncome": 700000
        }
      },
      {
        "description": "U5 profit within the AED 375,000 zero-rate band",
        "given": {
          "$.turnoverAnnual": 4000000,
          "$.profitAnnual": 300000,
          "$.electSmallBusinessRelief": false
        },
        "expect": {
          "$.corporateTax": 0,
          "$.netIncome": 300000
        }
      }
    ]
  }
}