Small Business Relief: who qualifies for UAE Corporate Tax relief

UAE Corporate Tax is 0% on the first AED 375,000 of taxable income and 9% above that. Small Business Relief (SBR) goes further: an eligible small business can elect to be treated as having no taxable income for the period.

Who can elect it

• UAE resident persons — companies and individuals doing business.
• Whose revenue is AED 3 million or less in the current tax period, and was AED 3 million or less in every earlier tax period.
• For tax periods ending on or before 31 December 2029 — the relief was extended in August 2026 (Ministerial Decision No. 131 of 2026).

Who can't

• Qualifying Free Zone Persons.
• Members of multinational groups with consolidated revenue above EUR 750 million.
• Businesses split up artificially to stay under the threshold — the FTA can deny the relief.

How it's claimed

SBR is elected in your Corporate Tax return, one period at a time. You still have to register for Corporate Tax, file a return every year, and keep proper records — the relief removes the tax, not the paperwork.

What it costs you

• Tax losses from a period where you elect SBR can't be carried forward.
• Losses brought forward from earlier periods can't be used in a period where you elect it.
• Disallowed net interest can't be carried forward either.

If you expect a loss this year and profits later, SBR may not be the better choice. Your accountant can compare the two.

Keep revenue tracked all year

Because one period above AED 3 million ends eligibility for good, it's worth knowing your revenue well before year-end — not after it.

This guide is general information, not tax advice. Rules were last reviewed in September 2026.