What has changed
Small Business Relief was originally available for tax periods ending on or before 31 December 2026. Ministerial Decision No. 131 of 2026, announced by the Ministry of Finance in August 2026, extends it by three years. It now applies to tax periods ending on or before 31 December 2029.
If your business qualified before, it can keep electing for relief for three more years, as long as it continues to meet the conditions.
Who qualifies
The conditions are unchanged. A business can elect for Small Business Relief if it is a UAE resident person and its revenue is AED 3 million or less in the tax period and in every previous tax period.
| Condition | Requirement |
|---|---|
| Revenue threshold | AED 3,000,000 or less |
| Applies to | Tax periods ending on or before 31 Dec 2029 |
| Residency | UAE resident person |
| How | Elect in the Corporate Tax return |
Who is excluded
- Qualifying Free Zone Persons, who have their own 0% regime.
- Members of multinational groups with consolidated revenue above AED 3.15 billion.
- Businesses that split their activities artificially to stay under the threshold.
What it does not change
Relief removes the tax, not the compliance. Businesses that elect for it must still register for Corporate Tax, file a return each year and keep proper accounting records for 7 years.
- Registration is still mandatory.
- An annual return is still required to make the election.
- Tax losses and some reliefs cannot be carried forward from periods where relief is elected.
Planning ahead
The extension gives small businesses time, but 2030 will come. Keep your books complete and your expenses documented, so the move to a full tax computation is straightforward when relief ends.
Call or WhatsApp us on +971 50 512 4558 to check whether you qualify and to file your election.
This article is general information based on UAE rules as of November 2026 and is not tax advice. Rules change, so please WhatsApp us or call +971 50 512 4558 about your situation.