The introduction of corporate tax in the UAE has raised many questions, especially among freelancers in Dubai who operate as solo entrepreneurs or are under freelance permits. While countless guides attempt to address the topic, many fall short of simplifying the complexities.
At Al Zora Accounting & Advisory, we specialize in helping freelancers understand and comply with Dubai’s corporate tax rules. In this guide, we’ll break down what the new tax law means for freelancers who need to pay and how to stay compliant, saving you both time and money.
Does Corporate Tax Apply to Freelancers in Dubai?
The good news is that not all freelancers are subject to corporate tax in the UAE. The Federal Tax Authority (FTA) has set a taxable income threshold of AED 375,000 per year. If your net income (not gross revenue) is below this amount, you’re exempt from paying corporate tax.
Important: You must still maintain proper records even if your income is below the threshold to prove non-liability during audits.
What If My Freelance Income Exceeds AED 375,000?
If your freelance income crosses the AED 375,000 threshold in a financial year, you are required to register for corporate tax in the UAE. Here’s how it works:
- Tax Rate: 9% on net profits (not gross income)
- Taxable Profits: Income minus allowable business expenses
- Registration: Freelancers must register with the Ministry of Finance and file annual tax returns
Key Considerations for Freelancers in Dubai
Accurate Record-Keeping
Keep detailed records of income, receipts, business-related expenses, and invoices. Proper bookkeeping is the foundation of compliant tax filing and can help you claim deductions legitimately.
Complying with Tax Deadlines
Corporate tax returns in the UAE are due annually, and penalties apply for late filing or incorrect disclosures. Our team at Al Zora ensures you never miss a deadline.
Free Zone Freelancers May Be Eligible for Tax Exemptions
Some free zones in Dubai offer tax relief under certain conditions. If your freelance activity aligns with their sector focus (e.g., media, tech, consultancy), you may benefit from tax exemptions.
Why Freelancers Should Work with a Tax Advisor
Navigating tax as a freelancer can be daunting, especially when you’re already managing clients, marketing, and deliverables. This is where professional tax advisory makes a real difference.
Benefits of Working with Al Zora Accounting & Advisory:
Expert Guidance
We stay current with UAE tax laws and freelance-specific regulations, so you don’t have to.
Save Time & Effort
Focus on your freelance projects while we handle your tax registrations, filings, and calculations.
Avoid Errors & Penalties
Incorrect tax filings can lead to fines. Our team ensures accuracy and compliance every step of the way.
Tailored Tax Planning
We help you optimize deductions and structure your freelance activity in the most tax-efficient manner.
Freelancing in Dubai: Prepare for Success in 2025
Freelancing in Dubai continues to thrive, especially with the rise of remote work, digital nomads, and creative professionals. While corporate tax introduces a new layer of responsibility, it shouldn’t be seen as a barrier.
With proper planning and the right support from Al Zora Accounting & Advisory, your freelance journey in Dubai can continue to grow compliantly and profitably.
📞 Get Expert Help Today
Ready to simplify your tax obligations as a freelancer?
Contact Al Zora Accounting & Advisory today for a free consultation. We’ll assess your income, walk you through the registration process (if applicable), and ensure you’re set up for long-term success.
