Family, salary and benefits
I am a freelancer or sole establishment. Is money I take out for myself a cost?
Usually safe if you keep the documents
The basic rule
For an individual who has to pay Corporate Tax (official term: a natural person who is a Taxable Person), money taken out of the business for personal use is not taken off the profit.
When it is different
- Genuine business expenses paid from your personal account remain business expenses if they are documented.
- If your business turnover is AED 1,000,000 or less in the calendar year, you are not subject to Corporate Tax as a natural person in the first place.
- Wages from a job, personal investment income and qualifying real estate investment income are outside Corporate Tax for natural persons.
Documents to keep
- Separate business bank account, or a clear record of which payments are business
- Invoices and receipts for business expenses
How safe is it?
Usually safe if you keep the documents Low: the rule is clear. The risk is mixing personal and business spending without records.
When to ask a professional
Ask if you are unsure whether you are taxed as a natural person or should set up a company. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.
Check it with the free calculator: Small Business Relief calculator →
Sources
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 11(3)(c), Art. 33(5)
- Cabinet Decision No. 49 of 2023 on natural persons subject to Corporate Tax — Art. 2
- FTA Corporate Tax Guide: Taxation of Natural Persons (CTGNP1) — Sections on deductions for natural persons
General information, not tax advice. Your situation may differ.
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