Tax Benefits
Dubai does not levy personal income tax on individuals, meaning you won’t pay taxes on your personal investments such as financial, real estate and crypto investments!
Threshold for Taxation: As stipulated in Clause (6) of Article (11) of the Corporate Tax Law, only those freelancers whose turnover surpasses AED 1,000,000 (equivalent to USD 272,000) within a Gregorian calendar year are subjected to Corporate Tax.
Applicable rates: If your turnover is is above AED 1,000,000, then profits from AED 1 to AED 375,000 will be taxed at 0%, and profits above 375,000 will be taxed at 9%.
Exemptions: For the tax years 2024, 2025 and 2026, it is possible to take advantage of the so-called "Small Business Relief", i.e. the exemption from taxation on profits if the turnover does not exceed 3,000,000 AED (approximately 800,000 USD)
Considerations: Some sources of income are exempt from being considered as 'Business or Business Activities' for Corporate Tax, irrespective of the turnover amount. This includes:
- Earnings from wages.
- Income from personal investments.
- Profits from real estate investments.
International Collaborations: If you’re partnering with clients across borders, these treaties can substantially reduce your tax obligations.
Expatriate Benefits: Originating from a country that has a taxation treaty with the UAE? This agreement can come to your financial rescue, ensuring your income isn’t taxed twice.
An attractive financial perk of living and freelancing in Dubai? The absence of capital gains tax. Whether you’re selling investments or properties:
Full Returns: Any profit made from your investments in Dubai remains entirely yours.
Investments: Capitalize on your time in Dubai by making judicious investments, and enjoy the tax-free benefits when you reap the rewards.
One of Dubai’s financial advantages is its lack of withholding taxes on international payments. Key takeaways for freelancers include:
Global Operations Simplified: If you’re outsourcing services or products from other countries, you can remit payments without any tax deductions.
Maximized Earnings: Keep more of your earnings when dealing with international suppliers or partners, optimizing your financial efficiency
Dubai ensures financial freedom for professionals, standing out with its zero-restriction policy on transferring funds. Key insights for you:
Transfer with Ease: Effortlessly move your profits, capital, or royalties, no matter where in the world you want them to go.
No Hidden Costs: Repatriate your earnings without worries of added fees or restrictive measures, giving you full control over your finances.”
Though the UAE is evolving with the introduction of corporate tax, its fiscal landscape still holds immense advantages for freelancers. Especially for those operating as individual professionals, Dubai remains a promising land of unmatched financial perks and opportunities.
