8 July 2026 · Sole establishment
Sole Establishments & Corporate Tax
A sole establishment (sole proprietorship) is not a separate taxable person — the individual owner is. That means the owner's combined business turnover is what is tested against the AED 1 million threshold, and their business profit above AED 375,000 is taxed at 9%. If one person owns several sole establishments, the turnover is aggregated, which is a common surprise for multi-licence owners.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
The person, not the licence
A sole establishment is legally the individual — so tax follows the person.
- The individual owner is the taxable person.
- Business income across all their licences is aggregated.
- The AED 1 million test looks at the combined figure.
- Profit above AED 375,000 is taxed at 9%.
Multiple licences, one owner
Owning several small businesses does not multiply your thresholds.
- Two AED 600k licences together cross AED 1 million.
- You cannot claim the 0% band once per licence.
- One registration covers the individual's business activity.
- Structuring may help — but only if planned early.
Related guides
Frequently Asked Questions
For sole proprietors and multi-licence owners.
Is my sole establishment a separate taxpayer?
No. The individual owner is the taxable person, so the business profit is taxed in the owner's hands.
I own two sole establishments — are they tested separately?
No. Turnover across all your business activity is aggregated for the AED 1 million test.
What rate applies?
0% on the first AED 375,000 of taxable profit and 9% above it, the same as companies.
Can Exiloz advise on structuring?
Yes. We review your licences and activity and advise whether a company structure is more efficient than sole establishments.
Tax your business the efficient way
Exiloz reviews your sole establishments and advises on registration and structure.