UAE Small Business Relief — Ends 31 December 2026

What the relief does

Small Business Relief allows a resident person whose revenue does not exceed AED 3 million in the relevant tax period — and in all previous tax periods — to elect to be treated as having no taxable income for that period. In practical terms: no Corporate Tax to pay, and a simplified compliance position.

The deadline that matters

Relief applies only to tax periods ending on or before 31 December 2026. A tax period that begins in 2026 but ends after 31 December 2026 does not qualify. For most calendar-year businesses, the period ending 31 December 2026 is the last one covered — after which the standard regime applies: 0% up to AED 375,000 of taxable income and 9% above.

Am I eligible?

Test	Requirement
Revenue	Not exceeding AED 3 million in the relevant tax period and all previous tax periods
Residence	Resident person for Corporate Tax purposes
Tax period	Must end on or before 31 December 2026
Election	The relief is not automatic — it must be elected

Note the word revenue, not profit. The test is on turnover, so a business with AED 3.4 million of revenue and modest margins does not qualify, even though its taxable profit may be small.

Two traps

1. Assuming it happens automatically

It does not. The relief must be elected, and you must be registered for Corporate Tax in the first place. Businesses that ignored registration because "we're too small to be taxed" can end up with a AED 10,000 late-registration penalty and no relief.

2. Not planning for what comes next

If your business has relied on the relief, the periods after it ends are the ones to plan for now — clean books, a realistic view of taxable profit, and an understanding of which deductions you can actually support. That planning is far cheaper before the period than after it.

What we do

An eligibility review against your actual revenue history and tax-period dates, registration if you are not yet registered, guidance on making the election correctly, and a forward plan for the first period after the relief ends.

Frequently asked questions

No. It must be elected, and the business must be registered for Corporate Tax. Eligibility alone does not reduce your liability if the election is not made correctly.

Revenue. The threshold is AED 3 million of revenue in the relevant tax period and all previous tax periods — not AED 3 million of profit.

The relief ceases to be available for tax periods ending after that date, and the standard regime applies: 0% on taxable income up to AED 375,000 and 9% above. As of now no extension has been announced, so businesses should plan on the basis that the relief ends.

Register, and have your position assessed. The late-registration penalty is AED 10,000, and the FTA has previously operated a waiver initiative tied to filing the first return within a defined window — whether it helps depends on your tax-period dates.

Small Business Relief — the final window