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The UAE has extended Small Business Relief for Corporate Tax to Tax Periods (the financial periods for which Corporate Tax is calculated and filed) ending on or before 31 December 2029. Ministerial Decision No. 131 of 2026 replaces the previous end date of 31 December 2026, while leaving the AED 3 million Revenue threshold unchanged. An eligible Resident Person (for example, a UAE company or an individual carrying on a business that is subject to Corporate Tax) must still satisfy the conditions and elect the relief in its Corporate Tax Return.
Оглавление
Основные выводы
- Small Business Relief now applies to eligible Tax Periods ending on or before 31 December 2029.
- The AED 3 million Revenue threshold has not changed.
- Revenue must not exceed AED 3 million in the relevant Tax Period or any previous Tax Period to which the threshold applies.
- A Qualifying Free Zone Person (a Free Zone business that meets the conditions for the special Corporate Tax regime) and a Constituent Company of a qualifying multinational enterprise group (a company that is part of such a multinational group) cannot elect for the relief.
- Eligible persons must still register for Corporate Tax, file a simplified Corporate Tax Return and make the election for each relevant Tax Period.
What Changed Under Ministerial Decision No. 131 of 2026?
Ministerial Decision No. 131 of 2026 replaces Clause 2 of Article 2 of Ministerial Decision No. 73 of 2023. The AED 3 million threshold continues to apply to Tax Periods commencing on or after 1 June 2023, and the threshold now continues to apply to subsequent Tax Periods ending on or before 31 December 2029. The earlier decision had limited this period to 31 December 2026.
Who Can Claim UAE Small Business Relief?
Small Business Relief may be elected by a Resident Person (for example, a UAE company or an individual carrying on a business that is subject to Corporate Tax) whose Revenue does not exceed AED 3 million in the relevant Tax Period and each previous Tax Period to which the threshold applies. Revenue is determined in accordance with the applicable accounting standards accepted in the UAE. If the threshold was exceeded in an earlier relevant Tax Period, the relief is not available in a later period merely because Revenue falls back below AED 3 million.
The relief is not available to a Qualifying Free Zone Person (a Free Zone business that meets the conditions for the special Corporate Tax regime) or a Constituent Company of a qualifying multinational enterprise group (a company that is part of such a multinational group). The person should therefore confirm both the Revenue test and its status before making the election.
What Does Small Business Relief Do?
A valid Small Business Relief election treats the eligible Resident Person as not having derived any Taxable Income (profit subject to Corporate Tax after the applicable tax adjustments) for that Tax Period. As a result, the person is not required to calculate Taxable Income for that period and completes a simplified Corporate Tax Return with fewer fields. The relief is an election, not an exemption from Corporate Tax registration, filing or record-keeping obligations.
Newly established businesses should also confirm their Corporate Tax registration requirements before relying on the relief.
Do Eligible Businesses Still Have to File a Corporate Tax Return?
Yes. Small Business Relief does not remove the Corporate Tax Return filing requirement. The Federal Tax Authority has confirmed that eligible persons must submit a simplified return within the statutory filing timeframe and elect for the relief in the return. Corporate Tax Returns are generally due within nine months from the end of the relevant Tax Period, unless the Federal Tax Authority specifies another date.
Businesses that need assistance preparing the return can use Beaufort Associates’ UAE Corporate Tax return filing services.
What Should a Business Check Before Electing for Small Business Relief?
Before electing, a person should confirm its Revenue history, eligibility status and the effect of the relief on future tax positions. Tax Losses (tax-adjusted losses under the Corporate Tax rules) and Net Interest Expenditure (net interest costs subject to the Corporate Tax interest limitation rules) arising in a Tax Period for which Small Business Relief is elected cannot be carried forward to later periods. However, eligible unused Tax Losses or Net Interest Expenditure from earlier Tax Periods in which Small Business Relief was not elected may generally continue to be carried forward, subject to the applicable conditions. The rules also prevent artificial separation of a business to keep Revenue below the AED 3 million threshold.
Where eligibility is uncertain, specialist Corporate Tax consultancy in the UAE can help assess the conditions before the return is filed.
How Can Beaufort Associates Help?
Beaufort Associates can review whether a business meets the Small Business Relief conditions, assess the Revenue threshold across relevant Tax Periods and prepare the Corporate Tax Return with the appropriate election. Businesses can also use our broader UAE Corporate Tax services for registration, filing and ongoing compliance support.
Часто задаваемые вопросы
Until when has UAE Small Business Relief been extended?
Small Business Relief has been extended to eligible Tax Periods ending on or before 31 December 2029. The extension was made through Ministerial Decision No. 131 of 2026.
Has the AED 3 million Small Business Relief threshold increased?
No. The Revenue threshold remains AED 3 million for the relevant Tax Period and previous Tax Periods to which the threshold applies. The 2026 amendment extends the period of availability; it does not increase the threshold.
Does Small Business Relief mean no Corporate Tax Return is required?
No. An eligible person must still submit a Corporate Tax Return within the applicable deadline and make the Small Business Relief election for the relevant Tax Period. The return is simplified where the relief is validly elected.
Can a Qualifying Free Zone Person claim Small Business Relief?
No. Ministerial Decision No. 73 of 2023 excludes a Qualifying Free Zone Person (a Free Zone business that meets the conditions for the special Corporate Tax regime) from electing for Small Business Relief. Separate Corporate Tax rules apply to Qualifying Free Zone Persons.
For businesses needing wider support beyond the relief election, see our UAE Corporate Tax services covering filing, consultancy, registration and other Corporate Tax compliance requirements.
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Last Reviewed on 8th September, 2026
This page sets out our understanding of corporate tax filing based on the legislation and guidance in force at the date of last review. The position may change, and the application to a particular set of facts may require further analysis. Nothing on this page constitutes professional, legal or tax advice. Beaufort Associates accepts no liability for action taken or not taken in reliance on this page. Please contact us for advice tailored to your circumstances.
Sources
Primary sources referenced on this page:
- Ministerial Decision No. 131 of 2026 Amending Certain Provisions of Ministerial Decision No. 73 of 2023 on Small Business Relief for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
- Ministerial Decision No. 73 of 2023 on Small Business Relief for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments - Article 21 (Small Business Relief)
- Federal Tax Authority - Corporate Tax Returns Guide CTGTXR1
- Federal Tax Authority - filing reminder dated 2 September 2026 confirming that persons eligible for Small Business Relief must submit simplified Corporate Tax Returns within the statutory timeframe
- Ministry of Finance announcement - Small Business Relief extended until 31 December 2029 (7 August 2026)
We have referenced the legislation in force as at the last review date. The UAE tax framework is evolving; later changes may affect the position. Speak with us for advice on your specific circumstances.
