Statutory Guide // Compliance

The AED 1 Million 'Natural Person' Threshold

Navigating the Statutory Line between Personal Income and Taxable Business

Governing Law

Federal Decree-Law No. 47

Revenue Limit

AED 1,000,000

Effective Date

January 1, 2026

Audit Standard

Forensic/Algorithmic

Statutory Milestones

For freelancers and gig workers in 2026, the FTA clarifies that you are a "Natural Person" carrying out a business. Your tax liability is not triggered by your visa, but by a forensic turnover calculation.

The AED 1,000,000 Trigger

Under the 2026 framework, you must register for Corporate Tax if your Gross Revenue (not profit) exceeds AED 1 million in a Gregorian calendar year.

Statutory Thresholds

  • Registration: Mandatory if Revenue > AED 1,000,000.
  • 9% Tax Rate: Applies to Net Profit > AED 375,000.
  • VAT: Mandatory if Taxable Supplies > AED 375,000.

Next Statutory Briefing

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What is 'Wholly and Exclusively' Business Expense for the Gig Economy?

Disclaimer: This guide is provided for informational context regarding UAE Decree-Law 47. Always verify your Natural Person status via the Arakan AI App.

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