UAE Freelancer & Sole Establishment — Corporate Tax Return (EmaraTax)

Establish the client's legal structure, licence type, and financial year end. This determines whether UAE Corporate Tax (Federal Decree-Law No. 47 of 2022) applies, which threshold is relevant (AED 1,000,000 for natural persons without a trade licence; all licensed businesses regardless of revenue), and whether a free zone or mainland regime governs.

Confirm or complete Corporate Tax registration with the Federal Tax Authority via the EmaraTax portal (tax.gov.ae). All UAE businesses — including freelancers and sole establishments — must register for CT before or by the deadline prescribed in FTA public clarification. Obtain the Tax Registration Number (TRN) for CT purposes. If annual taxable supplies exceed AED 375,000, separately assess mandatory VAT registration (5% rate); voluntary registration threshold is AED 187,500.

Collect all business income for the CT period and reconcile to bank statements. UAE self-employed clients typically receive income via telegraphic transfers (TT), Stripe/PayPal/Payoneer payouts, card settlements (Network International, Visa), or BNPL platforms. Identify and exclude personal receipts (WPS salary credits, internal transfers, loan proceeds). Produce a gross revenue schedule that will feed into the SBR eligibility check and CT computation.

Categorise all business expenditure and apply the CT Law adjustments required by Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 73 of 2023. Key adjustments: entertainment capped at 50% deductible; personal expenses of the owner fully non-deductible; fines and government penalties non-deductible; interest expense subject to thin capitalisation cap (30% of EBITDA or AED 12M, whichever is higher). Flag related-party transactions for transfer pricing documentation.

Apply the SBR eligibility test (Cabinet Decision No. 116 of 2022): revenue must be AED 3,000,000 or less in the tax period, client must be a Resident Person, and must not be a QFZP. If eligible, the SBR election deems taxable income nil (CT = AED 0) but must be actively elected on the EmaraTax CT return — it is not automatic. If SBR is not elected or not available, compute taxable income using the standard structure: accounting income per IFRS financials, plus/minus CT adjustments, less exempt income, less carried-forward losses (capped at 75% of current-year taxable income), less AED 375,000 nil-rate band, then apply 9% to the remainder.

Prepare and submit the Corporate Tax return through the EmaraTax portal (tax.gov.ae). The return is due 9 months after the financial year end (e.g., 30 September 2025 for a 31 December 2024 year-end). Upload financial statements, activate the SBR election if applicable, enter the CT computation, and make any CT payment due by the same deadline. Late filing attracts a penalty of AED 500 per month; late payment accrues 14% per annum.

For self-employed clients who are also VAT-registered (mandatory above AED 375,000 taxable supplies; voluntary above AED 187,500), confirm that quarterly or monthly VAT returns (VAT 201 form) have been filed on time via EmaraTax, and that output tax has been correctly accounted for on all B2B and B2C supplies at 5%. Check for any zero-rated supplies (exports of services to non-UAE recipients, international transport) or exempt supplies (bare land, residential leases). This phase only applies if the client is VAT-registered.