ZeroSync Accountants helps individuals understand whether corporate tax applies to them, what income is outside the regime, and what to do if their business turnover crosses the AED 1 million threshold.
Best for sole establishments, freelancers, consultants, individual partners and individuals with UAE business activity.
Natural persons are subject to UAE corporate tax only in respect of business or business activity carried on in the UAE, and only where the turnover from that business exceeds AED 1 million in a Gregorian calendar year.
This is why corporate tax did not become a general personal income tax. Salary, wages and ordinary personal investment income are outside the corporate tax regime.
The key distinction is business activity versus personal income. We review the income type and turnover before advising whether registration is required.
| Income type | Corporate tax position |
|---|---|
| Business or freelance activity above AED 1 million turnover | Within corporate tax |
| Business activity at or below AED 1 million turnover | Outside corporate tax |
| Salary and employment income | Outside corporate tax |
| Personal investment income | Outside corporate tax where not a business |
| Personal real estate income | Generally outside corporate tax where held personally and not as a licensed business |
Employment income, personal investment income and personal real estate income are generally outside corporate tax for individuals, provided the activity is not being carried on as a licensed or organised business.
The result is reassuring for most individuals. Corporate tax becomes relevant when a person is genuinely operating a business above the threshold.
If you are in scope, you need to register, keep records for the business, file the return and pay corporate tax on business profit above the AED 375,000 nil-rate band. Small Business Relief may also apply if the business is within AED 3 million revenue and meets the conditions.
A sole establishment is generally treated as the individual owner carrying on business, so the natural-person rules apply to that owner rather than to a separate company.
Individual partners in an unincorporated partnership may also need to consider their share of the business activity under the natural-person rules. We assess the structure before registration or filing.
We confirm whether business activity and turnover bring you into corporate tax.
We separate salary, personal investment, real estate and business income.
We register natural persons who are in scope.
We check the nil-rate band and Small Business Relief options.
We prepare the records and annual filing.
We review sole establishments and partnerships correctly.
Speak with ZeroSync and get the right route confirmed before the next deadline or filing period.
Only where they conduct business or business activity in the UAE and business turnover exceeds AED 1 million in a calendar year.
No. Salary, wages and employment benefits are outside corporate tax for natural persons.
It is the annual business turnover threshold. If business turnover exceeds AED 1 million in a Gregorian calendar year, corporate tax obligations can apply.
Generally no, where the investment activity is personal and not a licensed business activity.
You may need to register, keep records and file a corporate tax return for the business activity.
Generally yes. A sole establishment is treated as the individual owner carrying on business, so natural-person rules apply.
