The United Arab Emirates has become one of the most attractive locations for freelancers worldwide. The straightforward business registration process, low tax rates, and comprehensive support from free zone representatives create a dynamically evolving business environment. This article analyses taxation for freelancers in the UAE and its specifics.
First of all, it’s worth mentioning that under the UAE legislation, freelancers are considered entrepreneurs. To conduct freelance activities in the UAE, freelancers must obtain a special freelance permit. After obtaining the permit, freelancers have a right to receive a resident visa and open a bank account. At this point, each freelancer should determine whether their activity is subject to taxation.
It is important to note that the UAE's tax legislation is still under development. In 2022, the UAE government took a significant step in this regard by enacting Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, introducing corporate income tax (referred to as "Corporate Tax"). This raised questions about the way freelancers should pay tax...