Small Business Relief is available for tax periods ending on or before 31 December 2026. It must be actively elected in the corporate tax return — it is not applied automatically. To be eligible, the business must be a UAE resident entity and its revenue must not exceed AED 3 million in that tax period or in any prior tax period from 2023 onwards. Importantly, businesses that qualify for Small Business Relief still need to be registered for corporate tax and still need to file a return — the relief reduces taxable income to zero, but not the compliance obligation.
Watch out: Claiming Small Business Relief in a year where revenue exceeded AED 3 million — even if only narrowly — is an incorrect filing and exposes the business to back-tax plus penalties.
See also: Corporate Tax (CT), Taxable Income, Corporate Tax Return
