The Federal Decree-Law No. 47 of 2022 introduced a 9 percent corporate tax regime, effective from June 1, 2023. Influencers earning AED 375,000 or more annually from influencing activities are subject to this tax.
However, all influencers must register with the FTA and obtain a Corporate Tax Registration Number (CTRN). They are also required to file a Tax Return, even if they are not liable to pay tax.
While influencers can manage tax filing themselves, it is advisable to hire an accountant for compliance with tax regulations. Tax evasion can lead to imprisonment for up to five years and hefty fines.
The UAE tax authorities actively detect tax evasion, including underreporting income from sponsored posts, endorsements, and more.
The taxation of influencers is considered a complex issue, and policies may need to adapt to the evolving social media influencer industry to remain effective.