UAE Small Business Relief can treat an eligible Resident Person as having no Taxable Income for an elected Tax Period when Revenue is no more than AED 3 million in that period and all previous relevant periods. The relief has been extended to Tax Periods ending on or before 31 December 2029.
Start with four eligibility checks.
- Resident Person. The election is intended for an eligible UAE Resident Person, whether a natural person or juridical person.
- AED 3 million Revenue ceiling. Revenue must not exceed AED 3 million in the current period or any previous relevant Tax Period.
- Period within the relief window. The Tax Period must fall within the dates covered by the current decision.
- No excluded status. Check Qualifying Free Zone Person and multinational-group exclusions before calculating the benefit.
The test is based on Revenue determined under the applicable accounting standards, not profit, taxable income, cash received or the VAT-registration turnover calculation. Retain a clear revenue reconciliation for every period used in the test.
The relief window now runs to 31 December 2029.
On 7 August 2026, the UAE Ministry of Finance announced Ministerial Decision No. 131, extending Small Business Relief to subsequent Tax Periods ending on or before 31 December 2029. The AED 3 million threshold continues, subject to the legislation's conditions.
This is a period-end test, not a general promise that every small business receives relief until 2029. Confirm the taxpayer's own Tax Period, revenue history and status for each return.
Who cannot elect?
| Position | General result | What to check |
|---|---|---|
| Qualifying Free Zone Person | Excluded from Small Business Relief. | Confirm whether the entity meets and applies the Qualifying Free Zone Person regime. |
| Non-qualifying Free Zone Person | May be eligible as a Resident Person. | Apply the Revenue, period and other conditions. |
| Large multinational group member | Excluded where consolidated group revenue exceeds AED 3.15 billion. | Confirm group perimeter and consolidated revenue. |
| Revenue exceeded AED 3 million previously | Not eligible in a later period under the current cumulative test. | Review every previous relevant Tax Period, not only the current year. |
What does the election change?
An eligible person that elects is treated as not having derived Taxable Income for that Tax Period. The Federal Tax Authority describes a simplified return and reduced information burden, but the relief can affect access to other exemptions, reliefs, deductions and tax-loss outcomes. Compare the election with the taxpayer's wider position rather than assuming it is always optimal.
Transfer-pricing documentation requirements may be reduced under the relief, but transactions with Related Parties and Connected Persons must still comply with the arm's-length principle. Keep the records needed to show the parties, terms and business basis.
Registration, return filing and records still apply.
Small Business Relief is not a deregistration. The eligible person must make the election in its Corporate Tax return for each relevant Tax Period and retain evidence supporting Revenue and eligibility. A business with a 31 December 2025 year-end would generally still file by 30 September 2026.
Prepare the licence and registration records, financial statements or accounts, ledger, revenue reconciliation, related-party list, prior-period revenue schedule, relief assessment and submitted return acknowledgement.
Small Business Relief questions
What is the UAE Small Business Relief revenue threshold?
An eligible UAE Resident Person must have Revenue of no more than AED 3 million in the relevant Tax Period and every previous Tax Period within the relief window. Revenue is not the same as taxable income or profit.
How long has UAE Small Business Relief been extended?
The UAE Ministry of Finance announced on 7 August 2026 that the relief window was extended to Tax Periods ending on or before 31 December 2029, subject to the applicable conditions.
Is Small Business Relief automatic?
No. An eligible Taxable Person must elect for Small Business Relief in the Corporate Tax return for each relevant Tax Period. Registration, filing and record-keeping obligations still apply.
Can a Qualifying Free Zone Person claim Small Business Relief?
No. The Federal Tax Authority lists a Qualifying Free Zone Person as excluded from Small Business Relief. A Free Zone Person that is not a Qualifying Free Zone Person may be eligible if the other conditions are met.
Official sources
Reviewed 26 August 2026, including the August 2026 extension announcement.