Ae Income Tax

---
name: ae-income-tax
description: "Source-cited draft: personal income tax for United Arab Emirates (tax year 2026): rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/ae-income-tax"
  jurisdiction: "AE"
  tax_year: "2026"
  last_updated: "2026-10-31"
---

# UAE personal income tax position for 2026: what is taxed, when an individual falls into Corporate Tax, and tax residency

## Scope and who this is for ([Corporate Tax Law, consolidated](https://mof.gov.ae/wp-content/uploads/2026/01/Federal-Decree-Law-No.-47-of-2022-and-its-amendments-en-v13.1.26.pdf); [Cabinet Decision No. 49 of 2023](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf))

This skill answers three questions about individuals (natural persons) for tax year 2026, the calendar year that a natural person's Corporate Tax period follows:

1. **Is this person's income taxed in the UAE at all?** There is no federal personal income tax. Wages are not taxed, whatever the amount. Personal investment income and real estate investment income are not taxed either, provided they are not conducted through a licence and do not need one.
2. **Has this person's business activity brought them into Corporate Tax?** A natural person is a Taxable Person only when total turnover from business in the UAE is more than AED 1,000,000 in a calendar year. If so, the 0% and 9% Corporate Tax rates apply to their business taxable income, with registration, a return and possibly Small Business Relief.
3. **Is this person a UAE tax resident, and can they get a tax residency certificate?** This uses a separate test under Cabinet Decision No. 85 of 2022 and matters mainly for double tax agreements and for proving residence to another country.

It is written for anyone answering an individual's question: an employee, a freelancer or sole establishment owner, a property investor, a newcomer or leaver, or a non-resident with UAE income.

**Companion Skills.** Company Corporate Tax (free zones, deductions, losses, transfer pricing, top-up tax) is in the **ae-corporate-tax** skill. VAT registration, VAT on supplies and VAT return preparation are in the **uae-vat** skill. This skill only points to those rules. It does not repeat them.

**Not covered:** Emirate-level fees and charges, customs duty, excise tax, social security and pension contributions, and the tax a person may still owe to another country (for example, because of citizenship or because they have not broken residence there). For those, refer.

## What the UAE does and does not tax for an individual ([CTGTNP1: Taxation of natural persons](https://tax.gov.ae/Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf); [Natural Person bulletin](https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf))

| Income or event | UAE federal tax on the individual | Condition that matters |
| --- | --- | --- |
| Salary, wages, allowances, bonuses and benefits under an employment contract, in cash or in kind | None | Must really be employment. Whether someone is an employee is a question of fact |
| Director fees | Generally none | The FTA says director fees generally are not a business activity |
| Dividends, interest (including UAE bank interest), and gains on shares or other investments held for the person's own account | None | Not conducted through a licence, not needing one, and not a commercial business under the Commercial Transactions Law |
| Rent from UAE property, and gains on selling UAE property | None | Not conducted through a licence and not needing one |
| Selling personal belongings, such as a personal car | None | Not a business activity |
| Lottery or game-show winnings | Generally none | The FTA says these are not typically a business; judged case by case |
| Freelance, consultancy, trading, sole establishment or other business income from activity in the UAE | Corporate Tax, but only if total business turnover is more than AED 1,000,000 in the calendar year | Turnover from all the person's businesses is added together |
| Foreign income related to the UAE business, such as overseas sales of a UAE sole establishment | Included with the business, as above | Foreign income unrelated to a UAE business is not taxed |
| UAE-source income of a non-resident with no UAE business or permanent establishment | Withholding tax at 0% | The rate can change only by Cabinet decision |
| Buying goods and services | VAT, as for anyone | See the uae-vat skill |

Two points people often get wrong:

- **There is no tax-free first million of profit.** The AED 1,000,000 figure is a turnover test for entering Corporate Tax. Once a person is over it, all business taxable income is in scope. The first AED 375,000 of taxable income is taxed at 0% and the rest at 9% ([CTGTNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf); [Cabinet Decision No. 116 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%20No.%20116%20of%202022%20-%20for%20publishing.pdf)).
- **Tax residency and Corporate Tax are different tests.** Any natural person who conducts a business in the UAE is a "Resident Person" for Corporate Tax, whatever their visa, nationality or days in the country, unless a double tax agreement says otherwise. The 183-day and 90-day tests below decide tax residency for certificates and treaties. They do not decide whether a person pays Corporate Tax ([CTGRNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/CT%20Registration%20of%20Natural%20Persons%20-%2029%2012%202023.pdf)).

## Ask the client first

- **What does the person actually earn?** List every source for the calendar year: employment, director fees, freelance or consultancy fees, sole establishment sales, partnership share, rent, dividends, interest, investment gains, and any foreign income. ([Cabinet Decision No. 49 of 2023](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf))
- **Is any activity done through a licence, or does it need one?** Ask for trade, professional or freelance licences. A licence (or an activity that needs one) turns investment or property income into business income.
- **Is the person an employee, or self-employed?** Ask for the employment contract. Fees paid to a self-employed person, even by a single client, are business income.
- **What was total business turnover in each calendar year from 2024 onwards?** Turnover means gross income, not profit, and it is combined across all the person's businesses.
- **Is the person already registered for Corporate Tax?** Ask for the TRN, the registration date and any penalty notices.
- **Revenue in every earlier tax period.** This is needed for Small Business Relief. One period over AED 3,000,000 ends eligibility for good. ([Ministerial Decision No. 73 of 2023](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2073%20of%202023%20-%20for%20publishing.pdf))
- **Days in the UAE** in the relevant 12 consecutive months, counting part-days, and the entry and exit report if the count is close. ([Ministerial Decision No. 27 of 2023](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2027%20of%202023%20-%20for%20publishing.pdf))
- **Nationality and residence status:** UAE national, GCC national, holder of a valid UAE residence visa, or visitor.
- **Home and ties:** a tenancy contract or title deed for a home continuously available to them, where family lives, and where the main job or business is.
- **Why a residency certificate is wanted:** for a particular treaty country, a bank, or a foreign employer. This decides the certificate type and the period to request.
- **Other countries:** citizenship, and where else the person may be tax resident. The UAE rules do not settle what another country taxes.

## The method, step by step

1. **Sort every income source into one of four boxes:** wage, personal investment income, real estate investment income, or business. The first three are outside Corporate Tax whatever their size, but only while no licence is used or needed and, for investments, the activity is not a commercial business. If in doubt about the licence, the person decides that on their own facts, and it should be documented. ([Cabinet Decision No. 49 of 2023, Articles 1 and 2](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf); [CTGRNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/CT%20Registration%20of%20Natural%20Persons%20-%2029%2012%202023.pdf))
2. **Add up business turnover for the calendar year.** Use gross income from all the person's businesses in the UAE, including a share of a fiscally transparent unincorporated partnership and foreign income that relates to the UAE business. Leave out wages, personal investment income and real estate investment income. Measure it on the accruals basis, or on the cash basis if the person uses cash accounting. ([CTGRNP1, section 3.3](https://tax.gov.ae/Datafolder/Files/Guides/CT/CT%20Registration%20of%20Natural%20Persons%20-%2029%2012%202023.pdf))
3. **Apply the threshold.** Turnover of AED 1,000,000 or less: the person is not subject to Corporate Tax for that year and does not need to register, unless already registered (see step 7). Turnover of more than AED 1,000,000: the person is a Taxable Person for that calendar year. ([Cabinet Decision No. 49 of 2023, Article 2](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf))
4. **If over the threshold, register** for Corporate Tax on EmaraTax by 31 March of the following year (resident), or within 3 months of meeting the conditions (non-resident). One TRN covers all of a person's businesses. ([FTA Decision No. 3 of 2024, Article 5](https://tax.gov.ae/Datafolder/Files/Legislation/RE%20FTA%20Decision%20No.%203%20of%202024%20on%20Registration%20Timeline%20for%20Corporate%20Tax%20%20-%20For%20publishing.pdf); [Natural Person bulletin](https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf))
5. **Check Small Business Relief.** If revenue is AED 3,000,000 or less in this calendar year and in every earlier tax period, the person may elect relief in the return and is treated as having no taxable income. The election is made each year; it is not automatic. The detailed consequences are in the ae-corporate-tax skill. ([Ministerial Decision No. 73 of 2023](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2073%20of%202023%20-%20for%20publishing.pdf); [Ministerial Decision No. 131 of 2026](https://mof.gov.ae/wp-content/uploads/2026/08/Ministerial-Decision-No.-131-of-2026-Amending-Certain-Provisions-of-Ministerial-Decision-No.-73-of-2023-on-Small-Business-Relief-for-the-Purposes-of-Federal-Decree-Law-No.-47-of-2022-EN.pdf))
6. **Otherwise compute the tax.** Start from the accounting profit of all taxable businesses combined, make the Corporate Tax Law adjustments (the ae-corporate-tax skill covers deductions, interest limits and connected-person payments), then apply 0% up to AED 375,000 of taxable income and 9% above that. File one return for all businesses and pay within 9 months of 31 December. ([Cabinet Decision No. 116 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%20No.%20116%20of%202022%20-%20for%20publishing.pdf); [Corporate Tax Law, Articles 48 and 53](https://mof.gov.ae/wp-content/uploads/2026/01/Federal-Decree-Law-No.-47-of-2022-and-its-amendments-en-v13.1.26.pdf))
7. **In later years, stay registered while any business continues.** A registered person whose turnover falls to AED 1,000,000 or less keeps the TRN and files a nil return. Deregister within 3 months of stopping all business activity. ([Natural Person bulletin](https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf))
8. **Separately, test tax residency** if the person needs to prove residence or rely on a treaty. Apply the three tests in Cabinet Decision No. 85 of 2022 below. If the person meets any one of them, they are resident for that 12-month period and can apply for a tax residency certificate. If a treaty applies, its own residence rules decide residence for treaty purposes. ([Cabinet Decision No. 85 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf))

## Figures for tax year 2026 ([Natural Person bulletin](https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf); [Cabinet Decision No. 49 of 2023](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf); [Cabinet Decision No. 116 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%20No.%20116%20of%202022%20-%20for%20publishing.pdf); [Ministerial Decision No. 84 of 2025](https://tax.gov.ae/Datafolder/Files/Pdf/2025/MD-No-84-of-2025.pdf))

None of these figures changed between 2025 and 2026.

| Item | Figure | Detail |
| --- | --- | --- |
| Personal income tax on wages | None | No federal law taxes employment income |
| Corporate Tax entry test for a natural person | Turnover of **more than** AED 1,000,000 in a Gregorian calendar year | Exactly AED 1,000,000 is not over the threshold |
| Corporate Tax rate on taxable income up to AED 375,000 | 0% | The band applies once per Taxable Person, not per business |
| Corporate Tax rate on taxable income above AED 375,000 | 9% | Applies to all business taxable income over the band |
| Withholding tax on UAE-source income of a non-resident | 0% | Corporate Tax Law, Article 45 |
| Small Business Relief revenue limit | AED 3,000,000 or less in the current and every earlier tax period | For tax periods ending on or before 31 December 2029 |
| Cash-basis accounting allowed | Turnover not over AED 3,000,000 | Otherwise the accruals basis. Financial statements generally follow IFRS |
| IFRS for SMEs allowed | Turnover not over AED 50,000,000 | Audited financial statements required above AED 50,000,000 |
| Record keeping | 7 years after the end of the tax period | |
| Tax period | Calendar year, 1 January to 31 December | The first possible period was 2024 |

### Tax residency tests ([Cabinet Decision No. 85 of 2022, Article 4](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf); [Ministerial Decision No. 27 of 2023](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2027%20of%202023%20-%20for%20publishing.pdf))

A natural person is a UAE tax resident if they meet **any one** of these tests (in force since 1 March 2023):

| Test | Conditions |
| --- | --- |
| Centre of life | Their usual or primary place of residence **and** the centre of their financial and personal interests are in the UAE. Usual residence means the country where they spend most of their time as part of a settled routine. Centre of interests looks at their job, family and social ties, business and where their property is managed. |
| 183 days | Physically present in the UAE for 183 days or more within the relevant 12 consecutive months. What they did there does not matter. |
| 90 days | Physically present for 90 days or more within the relevant 12 consecutive months, **and** a UAE national, a GCC national or the holder of a valid UAE Residence Permit, **and** either has a Permanent Place of Residence in the UAE or carries on employment or business in the UAE. |

Counting rules:

- Any part of a day in the UAE counts as a full day, so travel days count. The days do not need to be consecutive.
- The FTA may disregard days spent in the UAE because of exceptional circumstances. These are events beyond the person's control, arising while they were already in the UAE, that they could not reasonably have foreseen and that stopped them leaving as planned.
- A "Residence Permit" does not include a temporary permit to enter for travel, tourism, sport, medical treatment or a similar purpose.
- A Permanent Place of Residence is a furnished dwelling that is continuously available to the person. It may be rented or otherwise occupied; it need not be owned. A place used only for occasional short stays does not qualify.
- "Employment" means a contract with a UAE employer for pay, or a continuing relationship in which all or substantially all of the person's income for their labour comes from one party for work done in the UAE. It can be full time or part time. Unpaid voluntary roles do not count.

### Tax residency certificate ([Tax Resident and TRC Guide, TPGTR1](https://tax.gov.ae/Datafolder/Files/Guides/VAT/VAT%20Guides/Tax-Resident-and-TRC--18-10-2024.pdf); [Cabinet Decision No. 65 of 2020 and amendments](https://tax.gov.ae/Datafolder/Files/Legislation/2025/Cabinet%20Decision%20No.%2065%20of%202020%20on%20FTA%20Services%20Fees%20and%20its%20amendments%20-%20for%20publishing%20%2003%2012%202025.docx.pdf); [Ministerial Decision No. 247 of 2023](https://mof.gov.ae/wp-content/uploads/2023/10/Ministerial-Decision-No247-of-2023-on-the-Issuance-of-Tax-Residency-Certificate-for-the-Purposes-of-International-Agreements.pdf))

- **Where to apply:** on EmaraTax, under "other services", then "Tax Residency Certificate".
- **Two types:** a domestic certificate, which applies the Cabinet Decision No. 85 of 2022 tests, and a certificate for a named double tax agreement, which applies that agreement's residence article and names the treaty and the other country.
- **Period:** the current or a past tax period (for an individual, the calendar year) or another 12-month period. Never a future period, and never more than 12 months. An individual can apply for the current period as soon as they meet a residence test.
- **Evidence for a domestic certificate:**
  - 183 days or more: Emirates ID and residence visa, or a passport copy and an entry and exit report from the Federal Authority for Identity and Citizenship (or a local government body).
  - 90 to 182 days: the same identity evidence, plus proof of employment or business (salary certificate, source of income, business evidence) or proof of a permanent home (certified tenancy contract, landlord's statement, or title deed with a utility bill in the person's name).
  - Centre of life test: identity evidence, a written statement explaining why their financial and personal interests are in the UAE with supporting documents, proof of the main home, and proof of income where relevant.
- **Timing:** the FTA generally responds within 10 business days of a complete application. It can withdraw a certificate if the facts turn out to be wrong or change.

| Fee (current table, amended to December 2025) | AED |
| --- | --- |
| Application submission, non-refundable | AED 50 |
| Review and electronic certificate, applicant registered with the FTA (for example with a Corporate Tax TRN) | AED 500 |
| Review and electronic certificate, natural person not registered with the FTA | AED 1,000 |
| Printed copy, each | AED 250 |

## Boundaries and exceptions ([Cabinet Decision No. 49 of 2023](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf); [CTGTNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf); [CTGRNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/CT%20Registration%20of%20Natural%20Persons%20-%2029%2012%202023.pdf))

| Situation | Treatment |
| --- | --- |
| Rent from several UAE flats of AED 1,200,000 a year, no licence needed | Real estate investment income. Not taxed and not counted towards the AED 1,000,000 test |
| Property activity done through a licence, or one that needs a licence (for example, a licensed real estate business) | Business income. Counts towards turnover |
| Share trading for the person's own account, no licence, not a commercial business | Personal investment income. Not taxed |
| Trading or dealing that is a commercial business under the Commercial Transactions Law, or done under a licence | Business income |
| Shareholder in a UAE company who does not run a business separately | Dividends are personal investment income. No registration |
| Employee who also runs a side business | The wage is ignored; only the side business turnover is tested |
| Several businesses (sole establishment, freelance work, a partnership share) | Turnover is combined. One TRN and one return for all of them |
| Freelancer with a single foreign client | Not a wage unless there is employment. Business income if the work is done from the UAE |
| Employee of a foreign company visiting the UAE for a few days | Not conducting business on their own account. Not a Resident Person for Corporate Tax |
| Non-resident with UAE-source income and no business in the UAE | Withholding tax at 0% ([Corporate Tax Law, Article 45](https://mof.gov.ae/wp-content/uploads/2026/01/Federal-Decree-Law-No.-47-of-2022-and-its-amendments-en-v13.1.26.pdf)) |
| Non-resident with a permanent establishment in the UAE and no treaty | Treated as a Resident Person for Corporate Tax; with a treaty, may instead be a Non-Resident taxed on the permanent establishment |
| Turnover over AED 1,000,000 but revenue AED 3,000,000 or less in every period | Must register. May elect Small Business Relief and pay nothing |
| Registered person whose turnover drops to AED 1,000,000 or less | Stays registered and files a nil return until all business stops |
| Tourist-visa visitor with 100 days in hotels | 90-day test fails (no Residence Permit, no permanent home, no job or business). Not resident unless present for 183 days or with a centre of life in the UAE |
| Person who owns a UAE flat but lives mainly abroad and spends 30 days a year in the UAE | Usual residence is abroad. Not resident under any test |

## Worked cases ([CTGTNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf); [Cabinet Decision No. 116 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%20No.%20116%20of%202022%20-%20for%20publishing.pdf); [Cabinet Decision No. 85 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf))

Amounts below are illustrations, not official figures, unless the case says it follows an FTA example.

**Case 1: employee with rent and dividends (2026).** Salary AED 480,000 from a Dubai employer, rent of AED 1,500,000 from two flats bought as investments (no licence needed), and dividends from UAE listed shares. None of this is business income. Nothing is taxed, the AED 1,000,000 test is not reached because none of it counts as turnover, and no Corporate Tax registration is needed. This follows the FTA's registration examples.

**Case 2: freelance consultant (2026).** Resident freelancer; consultancy turnover AED 1,200,000 in 2026 from clients in the UAE and abroad; profit after deductible costs AED 900,000; revenue never above AED 3,000,000 in any period.
- Turnover is more than AED 1,000,000, so she is a Taxable Person for 2026. She must register by 31 March 2027, and the 2026 return and any tax are due by 30 September 2027.
- If she elects Small Business Relief in the 2026 return, she is treated as having no taxable income, so no tax is due.
- Without the election: (900,000 - 375,000) x 9% = AED 47,250.

**Case 3: wage plus two businesses (follows FTA Example 17).** In one calendar year Miss P earns a wage of AED 200,000 for three months, freelance design turnover of AED 1,600,000 (expenses AED 400,000), and sole establishment phone sales of AED 1,200,000 in the UAE plus AED 800,000 overseas (expenses AED 1,400,000).
- Turnover: 1,600,000 + 1,200,000 + 800,000 = AED 3,600,000. The wage is left out; the overseas sales count because they relate to the UAE business.
- Revenue is over AED 3,000,000, so Small Business Relief is not available that year or ever again.
- Taxable income (no adjustments assumed): 3,600,000 - 1,800,000 = AED 1,800,000.
- Tax: (1,800,000 - 375,000) x 9% = AED 128,250.

**Case 4: just under the threshold (2026).** A sole establishment has turnover of AED 950,000 in 2026 and has never registered. It is not over AED 1,000,000, so there is no Corporate Tax and no registration for 2026. If the same person had registered because 2025 turnover was over the threshold, they stay registered and file a nil return for 2026 by 30 September 2027.

**Case 5: residence visa holder with 120 days (certificate for 2026).** A non-GCC national with a valid UAE residence visa rents a furnished flat in Abu Dhabi under a yearly lease, but works abroad and spends 120 days in the UAE in the calendar year.
- The 183-day test fails. The 90-day test passes: 90 days or more, a valid Residence Permit, and a Permanent Place of Residence. She is a UAE tax resident for the period.
- She has no Corporate Tax TRN, so the certificate costs 50 + 1,000 = AED 1,050, or 1,050 + 250 = AED 1,300 with one printed copy.
- The other country may also treat her as resident. The treaty tie-breaker then decides, and she should ask for a treaty certificate.

**Case 6: long-stay tourist (follows FTA Example 14).** Sulaiman, a non-GCC national, spends 100 days of 2024 in the UAE on tourist visas, in hotels, with no job or business there. He is not resident: he has no Residence Permit, no permanent home and no employment or business, and he is under 183 days.

```oa-check
name: Freelance consultant, Case 2 (2026)
inputs:
  taxable_income: 900000
  band: 375000
  rate: 0.09
steps:
  - tax: (taxable_income - band) * rate
expected:
  tax: 47250.00
```

```oa-check
name: Wage plus two businesses, Case 3
inputs:
  design: 1600000
  phones: 1200000
  overseas: 800000
  expenses: 1800000
  band: 375000
  rate: 0.09
steps:
  - turnover: design + phones + overseas
  - taxable_income: turnover - expenses
  - tax: (taxable_income - band) * rate
expected:
  turnover: 3600000.00
  taxable_income: 1800000.00
  tax: 128250.00
```

## When to refuse or refer

- **Anyone asking what "income tax rate" applies to their UAE salary:** answer that there is none. Do not invent a rate. If they ask about tax elsewhere (their home country, or a country they work in), refer them to that country's rules or adviser. ([Cabinet Decision No. 49 of 2023](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf))
- **Whether an activity needs a licence** (property portfolios, frequent share or crypto trading, short-term letting): this is a question of fact and of Emirate licensing rules. Refer to the licensing authority or a UAE tax agent before treating the income as outside Corporate Tax. ([CTGTNP1](https://tax.gov.ae/Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf))
- **Employment or self-employment unclear**, for example a single long-term contractor: refer. The label on the contract does not decide it.
- **Treaty residence, dual residence or leaving the UAE mid-year:** the domestic tests do not resolve a conflict with another country. Refer to a tax adviser who knows both countries. ([Cabinet Decision No. 85 of 2022, Article 6](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf))
- **Exceptional-circumstances claims** to discount days: the FTA decides. Refer, and keep the evidence.
- **A natural person over the threshold** who needs a full Corporate Tax computation (deductions, connected-person payments, losses, interest): use the ae-corporate-tax skill or a registered UAE tax agent.
- **Missed registration or late returns** with penalties already imposed, or any FTA audit: refer to a registered UAE tax agent.
- **Refuse** to help structure a business into several parts to stay under AED 1,000,000 or AED 3,000,000. Where a business is artificially separated, combined revenue is over AED 3,000,000 and Small Business Relief is elected, the FTA treats it as an arrangement to obtain a tax advantage under the general anti-abuse rule in Article 50 of the Corporate Tax Law. ([Ministerial Decision No. 73 of 2023, Article 6](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2073%20of%202023%20-%20for%20publishing.pdf))

## Filing and payment ([FTA Decision No. 3 of 2024](https://tax.gov.ae/Datafolder/Files/Legislation/RE%20FTA%20Decision%20No.%203%20of%202024%20on%20Registration%20Timeline%20for%20Corporate%20Tax%20%20-%20For%20publishing.pdf); [Natural Person bulletin](https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf); [Corporate Tax Law, Articles 48 and 53](https://mof.gov.ae/wp-content/uploads/2026/01/Federal-Decree-Law-No.-47-of-2022-and-its-amendments-en-v13.1.26.pdf))

There is no personal income tax return in the UAE. An individual files only if they are a Taxable Person for Corporate Tax.

| Step | Deadline for a 2026 calendar year |
| --- | --- |
| Register for Corporate Tax (resident natural person whose 2026 turnover is more than AED 1,000,000) | 31 March 2027 |
| Register (non-resident natural person over the threshold) | 3 months from meeting the conditions |
| File the 2026 return, one for all businesses, including a nil return or a Small Business Relief return | 30 September 2027 |
| Pay the Corporate Tax for 2026 | 30 September 2027 |
| Deregister after all business stops | Within 3 months of stopping |

Registering for VAT does not register a person for Corporate Tax, and the VAT turnover rules are separate (see the uae-vat skill).

### Returns being filed now: calendar year 2025 ([Natural Person bulletin](https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf); [CTP006](https://tax.gov.ae/Datafolder/Files/Pdf/2025/CTP006-Waiver-of-Late-Registration-Administrative-Penalty-02-07-2025.pdf))

- A natural person whose 2025 business turnover was more than AED 1,000,000 had to register by 31 March 2026. The 2025 return and payment are due by **30 September 2026**.
- The 2025 figures are the same as for 2026: the AED 1,000,000 turnover test, the 0% band up to AED 375,000 and 9% above it, and the AED 3,000,000 Small Business Relief limit.
- Anyone who registered late for a first tax period of 2025 could have the late registration penalty waived by filing the return within 7 months of the period end, which was 31 July 2026. That window has closed; filing by 30 September 2026 still avoids late filing penalties.

### Penalties ([Cabinet Decision No. 75 of 2023 and amendments](https://tax.gov.ae/Datafolder/Files/Legislation/Cabinet%20Decision%20No.%2075%20of%202023%20and%20amendments%20-%20For%20Publishing.pdf); [CTP006](https://tax.gov.ae/Datafolder/Files/Pdf/2025/CTP006-Waiver-of-Late-Registration-Administrative-Penalty-02-07-2025.pdf))

| Failure | Penalty |
| --- | --- |
| Late registration | AED 10,000. Waived if the first return is filed within 7 months of the end of the first tax period (first period only) |
| Late return | AED 500 for each month or part month in the first 12 months, then AED 1,000 for each month or part month |
| Late payment | 14% a year, charged monthly on the unpaid tax |
| Failure to keep records | AED 10,000, or AED 20,000 for a repeat within 24 months |

## Completion checklist ([Cabinet Decision No. 49 of 2023](https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf); [Cabinet Decision No. 85 of 2022](https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf))

- [ ] Every income source is sorted as wage, personal investment, real estate investment or business, and the licence question is answered and documented for each.
- [ ] Business turnover is totalled for each calendar year from 2024, across all businesses, including related foreign income.
- [ ] The threshold is applied as "more than AED 1,000,000", with the registration deadline of 31 March of the following year noted.
- [ ] Revenue history is checked against AED 3,000,000 for Small Business Relief, and the election is made in each return where wanted.
- [ ] Without relief, the tax is computed at 0% up to AED 375,000 and 9% above, with the Corporate Tax Law adjustments from the ae-corporate-tax skill.
- [ ] The return and payment are diarised for 30 September after the year end. A registered person below the threshold still files a nil return.
- [ ] If residence matters, the right residence test is identified (centre of life, 183 days or 90 days with conditions), days are counted with part-days included, and the certificate type and period are chosen.
- [ ] Other-country tax exposure is flagged for referral. The UAE answer does not settle it.

## Sources

| Source | URL | Read on |
| --- | --- | --- |
| Corporate Tax Law, consolidated | https://mof.gov.ae/wp-content/uploads/2026/01/Federal-Decree-Law-No.-47-of-2022-and-its-amendments-en-v13.1.26.pdf | 2026-10-31, opened, spot-checked only: 9% rate on Art. 3 |
| Cabinet Decision No. 49 of 2023 | https://tax.gov.ae/DataFolder/Files/Legislation/05-06-2023/3/Cabinet%20Decision%20No.%2049%20of%202023%20-%20for%20publishing.pdf | 2026-10-31, opened, spot-checked only: AED 1,000,000 test, Art. 2 |
| CTGTNP1: Taxation of natural persons | https://tax.gov.ae/Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf | 2026-10-31, link opened, not re-read |
| Natural Person bulletin | https://tax.gov.ae/Datafolder/Files/Pdf/2024/CT%20Bulletin/Basic%20Tax%20Information%20bulletin-%20Natural%20Person-English.pdf | 2026-10-31, link opened, not re-read |
| Cabinet Decision No. 116 of 2022 | https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%20No.%20116%20of%202022%20-%20for%20publishing.pdf | 2026-10-31, opened, spot-checked only: AED 375,000 band |
| CTGRNP1 | https://tax.gov.ae/Datafolder/Files/Guides/CT/CT%20Registration%20of%20Natural%20Persons%20-%2029%2012%202023.pdf | 2026-10-31, opened, spot-checked only: nil return |
| Ministerial Decision No. 73 of 2023 | https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2073%20of%202023%20-%20for%20publishing.pdf | 2026-10-31, opened, spot-checked only: AED 3,000,000, Art. 2 |
| Ministerial Decision No. 27 of 2023 | https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Ministerial%20Decision%20No.%2027%20of%202023%20-%20for%20publishing.pdf | 2026-10-31, link opened, not re-read |
| FTA Decision No. 3 of 2024, Article 5 | https://tax.gov.ae/Datafolder/Files/Legislation/RE%20FTA%20Decision%20No.%203%20of%202024%20on%20Registration%20Timeline%20for%20Corporate%20Tax%20%20-%20For%20publishing.pdf | 2026-10-31, link opened, not re-read |
| Ministerial Decision No. 131 of 2026 | https://mof.gov.ae/wp-content/uploads/2026/08/Ministerial-Decision-No.-131-of-2026-Amending-Certain-Provisions-of-Ministerial-Decision-No.-73-of-2023-on-Small-Business-Relief-for-the-Purposes-of-Federal-Decree-Law-No.-47-of-2022-EN.pdf | 2026-10-31, opened, spot-checked only: end date 31 December 2029 |
| Cabinet Decision No. 85 of 2022 | https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf | 2026-10-31, opened, spot-checked only: 183-day test, Art. 4 |
| Ministerial Decision No. 84 of 2025 | https://tax.gov.ae/Datafolder/Files/Pdf/2025/MD-No-84-of-2025.pdf | 2026-10-31, opened, spot-checked only: AED 50,000,000 audit test |
| Tax Resident and TRC Guide, TPGTR1 | https://tax.gov.ae/Datafolder/Files/Guides/VAT/VAT%20Guides/Tax-Resident-and-TRC--18-10-2024.pdf | 2026-10-31, link opened, not re-read |
| Cabinet Decision No. 65 of 2020 and amendments | https://tax.gov.ae/Datafolder/Files/Legislation/2025/Cabinet%20Decision%20No.%2065%20of%202020%20on%20FTA%20Services%20Fees%20and%20its%20amendments%20-%20for%20publishing%20%2003%2012%202025.docx.pdf | 2026-10-31, opened, spot-checked only: fees AED 50 and 250 |
| Ministerial Decision No. 247 of 2023 | https://mof.gov.ae/wp-content/uploads/2023/10/Ministerial-Decision-No247-of-2023-on-the-Issuance-of-Tax-Residency-Certificate-for-the-Purposes-of-International-Agreements.pdf | 2026-10-31, link opened, not re-read |
| CTP006 | https://tax.gov.ae/Datafolder/Files/Pdf/2025/CTP006-Waiver-of-Late-Registration-Administrative-Penalty-02-07-2025.pdf | 2026-10-31, link opened, not re-read |
| Cabinet Decision No. 75 of 2023 and amendments | https://tax.gov.ae/Datafolder/Files/Legislation/Cabinet%20Decision%20No.%2075%20of%202023%20and%20amendments%20-%20For%20Publishing.pdf | 2026-10-31, opened, spot-checked only: AED 10,000 and 20,000 penalties |

Not yet confirmed: every figure not named in the Read on column was not re-read on 2026-10-31, and the date of its earlier reading is not recorded.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-31. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `ae-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ae-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.