UAE Corporate Tax: What consultants, freelancers and influencer run businesses must prepare for

UAE Corporate Tax: What consultants, freelancers and influencer run businesses must prepare for

Dubai: Individuals based in the UAE and offering consultancy or other business services and generating Dh1 million or more during a year must register for corporate tax.

This would also have implications for social media influencers, freelancer work, and for those who are retired and doing consultancy or other work.

In a new update, the Federal Tax Authority issued a comprehensive update on when corporate tax and registering for it will apply to single individual businesses, or when their business activity puts them past Dh1 million in revenue for a year.

For instance, if a self-employed person provides consultancy and nets over Dh1 million and a profit on that, the income generated comes under ‘business or business activity’ conducted by a resident (‘natural person’).

“There is no exemption for the profit relating to the first Dh1 million of turnover,” the FTA said in the guidebook. However, the individual will be able to benefit from the 0 per cent rate on the first Dh375,000 of taxable income.”

Under UAE corporate tax, the 9 per cent applies to those businesses that exceed Dh375,000 in profit over a year.

Small Business Relief

This is where these individuals could consider applying for the ‘Small