Natural person (self-employed) — 0% up to AED 375k, 9% above
Effective burden at €60k
0.0%
What you pay
- 01
Corporate Tax on natural person (0% / 9%)
Progressive scale · base: annual profit · allowance 375,000 AED
Annual profit · AED Rate Any amount 9%
Eligibility
- Activities: business or business activity conducted by a natural person (freelance/self-employment permit)
- Corporate Tax obligations for a natural person are triggered only where total Turnover from business/business activities in the UAE exceeds AED 1,000,000 in a Gregorian calendar year (Cabinet Decision No. 49 of 2023). Below that turnover the person is outside the Corporate Tax regime entirely. Wage/employment income, personal-investment income and personal real-estate-investment income are always out of scope. There is no personal income tax. When in scope, taxable income (profit) up to AED 375,000 is taxed at 0% and the excess at 9% (Cabinet Decision No. 116 of 2022). Applies to financial years beginning on or after 1 June 2023.
Net income examples
| Gross/year | Net/year | Burden |
|---|---|---|
| 30,000 EUR | 30,000 EUR | 0.0% |
| 60,000 EUR | 60,000 EUR | 0.0% |
| 120,000 EUR | 117,168 EUR | 2.4% |
Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jun 1, 2023.
Important context
The AED 1,000,000 turnover gate (Cabinet Decision No. 49 of 2023) that switches Corporate Tax on for natural persons is expressed in notes, not in the engine: below the gate the person is fully outside the regime (tax 0), and the 0% allowance in the model already returns 0 for such small freelancers, so the modelled result is correct. The model applies the 0% band to the first AED 375,000 of profit and 9% above. No personal income tax and no mandatory social security for foreign nationals (expatriates receive end-of-service gratuity, not pension contributions). VAT (5%) on taxable supplies, registration mandatory above AED 375,000 of taxable turnover, is a consumption tax not modelled here. The tax.gov.ae (Federal Tax Authority) site was under maintenance at verification time; rates and thresholds are corroborated by the u.ae government portal and the Ministry of Finance.