Small business Relief in Corporate tax
Businesses with Revenues of AED 3 million or below in a relevant Tax Period and previous Tax Periods can elect for ‘Small Business Relief’ for Tax Periods that end on or before 31 December 2026.
Electing for Small Business Relief means that a Taxable Person will be treated as having no Taxable Income during the relevant Tax Period and that they can benefit from simplified compliance obligations. To claim Small Business Relief, an election must be made in the Taxable Person’s Corporate Tax Return in the relevant Tax Period.
What is “Small Business Relief”?
Small Business Relief releases certain businesses from the obligation to calculate and pay Corporate Tax and from having to comply with the regular Corporate Tax reporting requirements.
Who can claim Small Business Relief for UAE Corporate Tax purposes?
For Tax Periods that end on or before 31 December 2026, any of the following UAE Resident Persons with Revenue of AED 3 million or below in the current and previous Tax Periods can claim Small Business Relief:
- A natural person.
- A legal entity that is neither: – a Constituent Company of a Multinational Enterprise Group as defined in Cabinet Decision No. 44 of 2020 that operates in more than one country and has a total consolidated group revenue of more than AED 3.15 billion in each financial period; – nor a Qualifying Free Zone Person.
If an eligible Taxable Person’s Revenue exceeds AED 3 million in any Tax Period, they will no longer be eligible for Small Business Relief for that Tax Period and any future Tax Periods.
How can I elect for Small Business Relief?
Eligible Taxable Persons will be able to elect for Small Business Relief in their Corporate Tax Return.
