UAE-based freelancers and other self-employed professionals generating a turnover of Dh1 million plus (or likely to do so) need not convert their operations into a company format to register for the corporate tax.

There had been talk in some circles that creating a company structure would be beneficial for these self-employed individuals in the long-term. Especially if they were at a stage where their income and business growth possibilities were showing significant potential, and with a good chance to breach the Dh1 million a year in revenue threshold.

Registration has not opened for individual tax payers yet. That for businesses started from June 1, 2023.

As things stand now, the corporate tax rules only state that such individuals must register with the tax authorities ‘if their turnover exceeds Dh1 million with the January 2024 to December 2024 period’.

Thus, ‘the individual can register before the due date of filing returns, which is September 2025’, according to Rakesh Nair, Director – Corporate Tax at the consultancy Crowe UAE. “The UAE Corporate Law refers to turnover as the calendar year (which is January to December).