Small Business Relief allows eligible UAE businesses with low revenue to be treated as having no taxable income for Corporate Tax purposes. It was originally available for tax periods ending on or before 31 December 2026. In August 2026, the Ministry of Finance extended it to tax periods ending on or before 31 December 2029.

This guide explains what changed, who can use the relief, who cannot, and what businesses still need to do each year.

What Changed in 2026

The extension was made by Ministerial Decision No. 131 of 2026, which amends Ministerial Decision No. 73 of 2023 on Small Business Relief. According to the Ministry of Finance:

  • The relief now applies to tax periods that start on or after 1 June 2023 and end on or before 31 December 2029.
  • The revenue threshold of AED 3 million stays the same.
  • The decision takes effect from the day after its publication.

For eligible businesses, this means three more years of planning certainty. Older articles that still mention a 2026 end date are out of date.

Who Qualifies for Small Business Relief?

A resident person, whether a company or an individual, can elect for Small Business Relief if its revenue is AED 3 million or less in the current tax period and in every previous tax period.

The second part of the test matters. If revenue exceeds AED 3 million in any tax period, the business cannot use the relief for that period or for later periods, even if revenue falls again.

Who Is Excluded?

According to the FTA, the following cannot elect for Small Business Relief:

  • Qualifying Free Zone Persons. Free zone companies that benefit from the 0% rate on qualifying income must use that regime instead.
  • Members of large multinational groups whose consolidated group revenue exceeds AED 3.15 billion.

You Still Need to Register and File

Small Business Relief is not an exemption from the Corporate Tax system. The FTA has confirmed that eligible businesses must:

  1. Register for Corporate Tax within their registration deadline. Late registration carries an AED 10,000 penalty.
  2. Elect for the relief for each tax period in which they want to use it.
  3. File a simplified Corporate Tax return within nine months of the end of each tax period. For a 31 December year end, that means by 30 September of the following year.

Businesses should also keep proper accounting records. Revenue must be supported by reliable figures so the business can show that it meets the threshold if the FTA asks.

Is Small Business Relief Right for Your Business?

For many small businesses, the relief reduces the Corporate Tax payable for the period to nil and simplifies the return. It is worth reviewing your position with an adviser before electing, particularly if:

  • Your revenue is close to AED 3 million and may cross the threshold.
  • You operate in a free zone and are assessing whether you are a Qualifying Free Zone Person.
  • You are part of a wider group of related businesses.

Read our Corporate Tax registration guide and our guide to Corporate Tax return filing for the next steps.

Frequently Asked Questions

When does Small Business Relief end in the UAE?

It now applies to tax periods ending on or before 31 December 2029, following Ministerial Decision No. 131 of 2026.

What is the revenue limit for Small Business Relief?

AED 3 million in the current tax period and in all previous tax periods.

Do I still need to file a Corporate Tax return if I use Small Business Relief?

Yes. You must register for Corporate Tax and file a simplified return within nine months of the end of each tax period.

Can a free zone company use Small Business Relief?

A Qualifying Free Zone Person cannot. Other free zone businesses should check their position with an adviser.

Note: This article provides general information only and is not tax advice. Eligibility depends on your circumstances, and rules can change. Confirm the current requirements with the Federal Tax Authority or a qualified tax professional.