Freelancers and social media influencers in the UAE who earn more than Dh1 million annually have until March 31, 2025, to register for corporate tax. This extended deadline offers greater flexibility compared to traditional businesses.
For those earning under Dh1 million, registration isn't required. Even those making between Dh1 million and Dh3 million may qualify for the Small Business Relief program, exempting them from taxable income if they maintain proper records.
The tax threshold applies differently depending on the type of license held. Freelancers using a ‘natural person’ license follow the Dh1 million threshold, whereas those with a company set up as a 'juridical person' have no such threshold and must register regardless of income.
This leniency reflects the UAE's growing freelancer economy, which has seen significant growth, particularly in sectors like technology, project management, and social media. Even freelancers outside the UAE working on local contracts must comply if their earnings exceed Dh1 million, subject to any relevant double taxation agreements.
Additionally, freelancers may benefit from using a cash basis of accounting, allowing them to delay tax payments until cash is actually received, unlike the accrual accounting method, where taxes are due once an invoice is issued.
This corporate tax framework provides flexibility for freelancers and influencers, ensuring they can continue to thrive in the UAE's growing economy.
