On 7 August 2026, the Ministry of Finance announced that Small Business Relief for UAE Corporate Tax purposes has been extended to tax periods ending on or before 31 December 2029.
The AED 3 million revenue threshold continues
The existing threshold continues to apply: eligible taxable persons with revenue not exceeding AED 3 million for the relevant tax period may be able to elect for Small Business Relief, subject to the conditions in the Corporate Tax legislation. The extension changes the end date for the relief period; it does not make the relief automatic or remove the other eligibility rules.
What small businesses can do now
- Track revenue for each tax period and retain supporting accounting records.
- Check the business’s tax status and whether any statutory exclusions apply.
- Review the election and filing requirements before preparing the Corporate Tax return.
- Keep evidence supporting revenue figures, related-party arrangements and any claimed eligibility.
- Reassess eligibility each tax period rather than assuming a prior-year result continues.
Small Business Relief affects how an eligible person is treated for Corporate Tax purposes, but it does not remove the need to register, maintain records or meet other obligations that still apply. Confirm the rules for the relevant tax period before making an election.
Official source: Ministry of Finance announcement on the extension to 31 December 2029.
This article is a general summary. Eligibility depends on the legislation and the business’s circumstances.
