Key takeaways
- Resident businesses with revenue of AED 3 million or less can elect to be treated as having no taxable income.
- The relief now applies to tax periods ending on or before 31 December 2029.
- It is not automatic: you must elect it in your Corporate Tax return.
- You still need to register, file a return and keep proper records.
What is Small Business Relief?
Small Business Relief lets an eligible resident person be treated as having no taxable income for a tax period. In practice, the Corporate Tax payable for that period becomes zero.
The revenue threshold of AED 3 million was set by Ministerial Decision No. 73 of 2023. A Ministerial Decision issued in August 2026 extended the relief to tax periods ending on or before 31 December 2029; the conditions did not change.
Who qualifies?
- You are a resident person for UAE Corporate Tax.
- Your revenue is AED 3 million or less in the current tax period and in each previous tax period.
- The tax period ends on or before 31 December 2029.
Who is excluded?
Qualifying Free Zone Persons and members of large multinational enterprise groups cannot use the relief, whatever their revenue. The FTA can also deny it where a business has been artificially split to stay under the threshold.
How to elect it
- Register for Corporate Tax on EmaraTax, even if you expect no tax to be due.
- Check your revenue for the current and all previous tax periods against the AED 3 million test.
- Elect for Small Business Relief in your Corporate Tax return and file it by the deadline.
What you give up
Tax losses from a period where you elect the relief cannot be carried forward. If you expect losses now and profits later, compare both options before you elect.
General information, not tax advice. Rules change; check the latest FTA guidance or speak to a registered tax agent about your situation.
FAQ
Is Small Business Relief automatic?
No. You must elect it in your Corporate Tax return for each tax period you want it to apply.
Do I still need to register and file?
Yes. Registration and filing are still required, and missing them can bring penalties even when no tax is due.
Can a Free Zone company use it?
A Qualifying Free Zone Person cannot. A free zone company that is not a Qualifying Free Zone Person may be eligible if it meets the other conditions.
About the author
Zubair Akbar
Chartered Accountant, Group CFO and FTA-approved Tax Agent (TAAN 20059440) with 16+ years in audit, tax and finance across the UAE and Pakistan.
More about Zubair →