Small Business Relief for UAE Corporate Tax

Small Business Relief lets eligible businesses choose to be treated as having no taxable income for a tax period, so no Corporate Tax is payable. It is designed to reduce the burden on small businesses, but it has conditions and trade-offs worth understanding before you elect it.

Who can claim it

• A UAE resident taxable person
• Revenue of AED 3 million or less in the relevant tax period and in all previous tax periods
• A tax period that starts on or after 1 June 2023 and ends on or before 31 December 2029 (the relief was extended in August 2026)
• Not a Qualifying Free Zone Person and not part of a large multinational group within the top-up tax rules

What to keep in mind

• You must still register for Corporate Tax and file a return, where you make the election
• You are treated as having no taxable income, so tax losses for those periods cannot be carried forward
• Records must still be kept in the required form
• The relief is currently available only for the periods listed above

How we help

• Checking whether you meet the conditions for each tax period
• Comparing the relief with filing normally, for example where you have losses
• Registering you and filing the return with the election
• Keeping your bookkeeping in order so the revenue figures are supportable

Related: Corporate Tax registration in the UAE | Corporate Tax guide 2026 | Bookkeeping services | Contact us

This page is general information, not advice on your particular facts. Rules and time limits can change, so contact us and we will check your position with the FTA requirements.