Are you an online seller, a social media influencer, or an e-commerce entrepreneur in the UAE? If yes, then Corporate Tax in UAE is something you need to understand clearly. Many small business owners and individuals think that corporate tax applies only to big companies—but that’s not true. Even if you are earning through online platforms, social media promotions, or e-commerce websites, you may now be considered a taxable person in UAE under the new rules.
This guide will break down everything you need to know in simple terms, so you can stay compliant and avoid penalties.
If you are an individual earning through online selling, social media influencing, content creation, or e-commerce platforms, and your total turnover exceeds AED 1 million in a year, then you must register for corporate tax in UAE.
The UAE's Federal Tax Authority (FTA) clearly states that natural persons (individuals) who are doing business or business activities, and whose income crosses AED 1 million annually, will be treated as taxable persons.
If you cross the AED 1 million total turnover in a calendar year, you are classified as a Taxable Person and must complete your Corporate Tax registration on time.
So, if you're:
The UAE Corporate Tax rate is 9%, but only on the profit that exceeds AED 375,000.
Let’s understand with a simple example:
👉 If your net profit is AED 600,000, the first AED 375,000 is tax-free, and you only pay 9% on the remaining AED 225,000, which is AED 20,250.
So, small online businesses and solo entrepreneurs still get a good tax-free slab, making the system fair and easy.
If your income from online selling or influencing crossed AED 1 million in 2024, you must register for corporate tax by 31 March 2025.
Many small entrepreneurs think taxes are only for big businesses. But now, the UAE Corporate Tax law includes everyone who is part of a growing digital and online economy. Not filing your tax can lead to heavy penalties, starting from AED 10,000, and may harm your business reputation.
If you're serious about growing your online business, staying compliant will help you build trust, attract investors, and grow professionally.
Are you an online seller, influencer, or e-commerce entrepreneur feeling overwhelmed by UAE corporate tax rules? Don’t worry—we’re here to help! At BSD Prime Services, we specialize in making tax compliance simple and stress-free for businesses like yours.
If you need help with corporate tax registration, filing, or planning, don’t hesitate to reach out us. We can provide personalized advice and ensure you stay on top of your tax responsibilities. Call +971 50 710 3139, +971 4 235 5682
Yes, if an online seller's total annual turnover exceeds AED 1 million, they are required to register for Corporate Tax in the UAE and file returns accordingly.
The standard Corporate Tax rate in UAE is 9% on net taxable income exceeding AED 375,000. Income below AED 375,000 is taxed at 0%.
If your turnover exceeded AED 1 million in 2024, you must register for Corporate Tax by 31 March 2025, as per Federal Tax Authority guidelines.
The penalty for failing to register for Corporate Tax in UAE before the due date is AED 10,000, as announced by the Federal Tax Authority (FTA).
You can register for Corporate Tax in UAE through the EmaraTax platform or by visiting any Tas’heel Centre. The registration process requires your business details, Emirates ID, and other supporting documents.
BSD Prime Services is a highly acclaimed certified tax consultant in Dubai, UAE. Since VAT was introduced in January 2018, we've supported numerous UAE-based businesses with essential financial advice on corporate tax and vat services like filing, settlements, auditing, registration, bookkeeping and penalties for late tax submissions.
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