# Corporate Tax for Freelancers UAE 2026 — the AED 1m test

Source page: https://valem.run/calculators/uae/self-employed

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.

**Tax year:** 2026

## How it 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

With Business turnover this calendar year of 2,500,000, this model computes Net income after Corporate Tax of 900,000 AED.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `turnoverAnnual` | Business turnover this calendar year (AED) | number |
| `profitAnnual` | Business profit (taxable income) | number |
| `electSmallBusinessRelief` | Elect Small Business Relief | boolean |

## 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](https://mof.gov.ae/wp-content/uploads/2023/05/Cabinet-Decision-No.-49-of-2023.pdf) (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)](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)
- [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](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)
- [Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (English translation), arts. 3 and 21](https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf) (checked 2026-10-12)

## What this page claims

The Valem engine reproduces this model's formula through 5 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/uae/self-employed.json
- Compute by URL: https://valem.run/calculators/uae/self-employed.json?turnoverAnnual=2500000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `uae/self-employed`)