Self-employed / natural person business – United Arab Emirates
Estimate take-home in the UAE: no personal income tax on salary in the model; optional GPSSA for UAE nationals (2023 law rates, AED 70k private cap). Not EOSG or full payroll.
by Simon Bodych
Methodology & sources
UAE salary calculator methodology (2026)
Updated April 2026. Sources: Federal Law 7/1999, Federal Decree-Law 57/2023 (GPSSA), Federal Decree-Law 33/2021 (Labour Law), Cabinet Decision 96/2023 (alternative scheme), Federal Decree-Law 47/2022 (Corporate Tax), Ministerial Decision 73/2023 (Small Business Relief).
Employee
The UAE levies no federal personal income tax on salary. The calculator optionally models GPSSA contributions for UAE nationals, the statutory end-of-service gratuity (EOSG) and the voluntary alternative savings scheme. Mandatory health cover, DIFC DEWS, ADPF and corporate income tax are out of scope.
GPSSA — two parallel regimes
FDL 7/1999 (registered before 31 Oct 2023):
- Private sector: contribution salary between AED 1,000 and AED 50,000; total 20% = employee 5% + employer 12.5% + government subsidy 2.5% — only when contribution salary < AED 20,000. Above AED 20,000 no government subsidy and the employer pays the full 15%.
- Government sector: contribution salary up to AED 300,000, employer 15%, no government subsidy.
FDL 57/2023 (new joiners from 31 Oct 2023):
- Private sector: contribution salary between AED 3,000 and AED 70,000; total 26% = employee 11% + employer 15%; government subsidy 2.5% (reduces employer share to 12.5%) only when contribution salary < AED 20,000.
- Government sector: contribution salary up to AED 100,000, employer 15%, no government subsidy.
End-of-Service Gratuity — Art. 51 FDL 33/2021
For full-time employees with ≥ 1 year of continuous service:
- first 5 years: 21 days basic wage per year;
- subsequent years: 30 days basic wage per year;
- partial years pro-rated;
- daily wage = basic monthly / 30 (MOHRE practice);
- Statutory cap: 24 × basic monthly wage (two years' basic salary).
Alternative savings scheme (Cabinet Decision 96/2023)
Voluntary replacement for EOSG. Employer transfers a monthly subscription to a regulated investment fund:
- 5.83% of basic monthly if service < 5 years;
- 8.33% of basic monthly if service ≥ 5 years.
Net → gross
Binary search over the gross→net function for the selected status and GPSSA model.
Self-employed / freelancer — Corporate Tax (FDL 47/2022)
Natural persons conducting business activity fall within Corporate Tax only when annual business turnover > AED 1,000,000 (Cabinet Decision 49/2023). Wages, rental and other non-business income are excluded from this test.
Standard rates:
- 0% on the first AED 375,000 of taxable profit;
- 9% on taxable profit above AED 375,000.
Small Business Relief (Ministerial Decision 73/2023): resident taxable persons with annual revenue ≤ AED 3,000,000 may elect to be treated as having no taxable income (effectively 0%) for tax periods ending on or before 31 December 2026. The election is not automatic — it must be made in the tax return. Not available to QFZPs or members of MNE groups.
