Freelancers and Consultants in the UAE — Are You on the FTA’s Radar?
- Lex Consulta
- Jul 5
- 2 min read
Updated: Oct 14
When the UAE introduced Corporate Tax, many assumed it would apply exclusively to registered companies. In reality, the scope of the tax regime is broader—capturing individuals engaged in independent business and professional activities.
Understanding the Threshold
If you are a freelancer, consultant, coach, online service provider, or independent contractor generating more than AED 1 million annually, your income may fall within the scope of UAE Corporate Tax, even if you are not formally incorporated as a business.
What Qualifies as Taxable Business Activity
Freelance and consulting services
Advisory, coaching, and professional services
Online businesses and e-commerce
Content creation and social media services
Any activity generating income outside of employment
What Is Not Taxable
Employment income (salaries and wages)
Personal investment income (such as dividends, interest, capital gains)
Rental income, unless earned through a licensed real estate business
The Compliance Risk
Many individuals unknowingly trigger corporate tax obligations once they exceed the AED 1 million income threshold, without realizing their activities meet the legal definition of conducting a business. Failure to register or comply may result in penalties, interest charges, and lost opportunities for effective tax planning.
How Lex Consulta Can Help
If you operate independently and approach or exceed the income threshold, now is the time to:
Assess your legal and tax position
Register with the Federal Tax Authority, if applicable
Structure your business and reporting obligations appropriately
Lex Consulta advises professionals, entrepreneurs, and independent earners across the UAE on regulatory compliance and tax strategy. Our team provides tailored legal and tax solutions that align with your business goals and ensure you remain compliant in an evolving legal landscape.
Contact us to arrange a confidential consultation. Let’s ensure your legal structure supports your success.