The Federal Tax Authority (FTA) have just announced taxes for UAE influencers looking to generate income in the nation.
Under the Corporate Tax Law, regulations have changed for the budding influencer community in the UAE, with significant consequences if not abode to. If your annual income, as an influencer, amounts to Dhs375,000 or higher, you are obligated to pay a 9 percent corporate tax.
However, if you are making any sort of monetary gain through social media influencing, this still applies to you.
Everything you need to know about taxes for UAE influencers
If you’ve ever spoken to an influencer, you would know that the job entails more than it looks. From contract negotiations, to strategy ideation and, of course, multi-media content creation. It has always been a job that functions more like a traditional business, than a singular profession. It is for that reason, that the UAE has officially categorised the profession as business, under tax regulations.
The work an influencer engages in, from affiliate marketing, sponsored posts and brand deals. Coupled with the responsibilities it entails, requires the individual to assume the role a business would. Therefore, within tax regulations, the profession is deemed an enterprise. And though the UAE doesn’t impose income tax, they do levy corporate tax.
GRAZIA breaksdown the steps
Firstly, even if you’re currently exempt from paying taxes, you must register your earnings with the FTA. A seamless process in which you acquire a Corporate Tax Registration Number (CTRN) through the EMARATAX platform, available on FTA’s site.
Similar to traditional businesses, if your influencer activities amounts to an income of, or above, Dhs375,000 you are obligated to the same 9 percent tax payment. However, regardless of the income you obtain from the industry, you are required to file a Tax Return every year.
All those who fail to comply with the updated taxes for UAE influencers may face up to five years of jail time. BSA Legal’s associate, Maroun Abou Harb even advised hiring an accountant, in an interview with Arabian Business. “Especially for those filing returns for the first time,” he explains.
