UAE Small Business Relief Extended to 2029: Rules & How to Claim

Last updated: 7 September 2026 · Reviewed by: ACL Tax Consultants — FTA-Registered Tax Agent

In August 2026 the UAE Ministry of Finance issued Ministerial Decision No. 131 of 2026, extending Small Business Relief under the Corporate Tax regime by three years. If you were bracing for this relief to disappear at the end of 2026, here is the good news — and the one thing you still have to get right.

What has changed?

Small Business Relief was originally introduced by Ministerial Decision No. 73 of 2023 and was due to expire for tax periods ending after 31 December 2026. The new decision amends that rule and pushes the end date out to 31 December 2029. Everything else about the relief stays the same.

What is UAE Small Business Relief?

Small Business Relief lets a resident UAE business with revenue at or below AED 3 million — in the current tax period and every previous one — elect to be treated as having no taxable income for that period. In practice that means no Corporate Tax to pay and a simplified compliance path: you don’t have to calculate taxable income in the usual detail, and you can use a cash basis of accounting.

The one catch: it is not automatic

Extending the relief does not make it hands-off. To actually benefit, you must:

1. Register for Corporate Tax and hold a Tax Registration Number.
2. File a Corporate Tax return for the tax period.
3. Elect for Small Business Relief in that return.

Miss any of these and you do not get the relief — and late registration or filing carries FTA penalties. In short: relief means no tax, not no paperwork. And if your revenue exceeds AED 3 million in any tax period, you cannot elect for that period, and the standard 0% / 9% Corporate Tax rates apply instead.

Who qualifies?

• Resident persons — both individuals (natural persons) running a business and companies (juridical persons).
• Revenue of AED 3 million or less in the relevant tax period and in all previous tax periods (from periods starting on or after 1 June 2023).
• For any tax period ending on or before 31 December 2029.

Who cannot claim it?

• Qualifying Free Zone Persons, who already benefit from 0% Corporate Tax on qualifying income.
• Members of Multinational Enterprise (MNE) Groups — large groups with consolidated revenues of EUR 750 million or more, which fall under the global minimum tax rules.

How do you claim Small Business Relief?

1. Register for Corporate Tax on the FTA’s EmaraTax portal, if you have not already.
2. Keep records that show your revenue is at or below AED 3 million for the period.
3. File your Corporate Tax return for the tax period.
4. Elect for Small Business Relief in that return, by your filing deadline — nine months after your tax period ends.

What the extension means for your business

• Three more years of certainty. Eligible startups and small businesses can keep paying 0% Corporate Tax through 2029.
• Watch the AED 3 million line. Cross it in any period and you lose the relief for that period — so track revenue closely as you grow.
• Use the runway. Build clean, compliant accounting now so you are ready for full Corporate Tax when the relief eventually ends.

Frequently Asked Questions

Until when is UAE Small Business Relief available now?

For tax periods ending on or before 31 December 2029, following Ministerial Decision No. 131 of 2026 — three years beyond the original 31 December 2026 deadline.

What is the revenue threshold for Small Business Relief?

AED 3 million. Your revenue must not exceed AED 3 million in the current tax period or in any previous tax period.

Do I still have to register and file if I claim Small Business Relief?

Yes. You must register for Corporate Tax, file a return for the period, and actively elect for the relief. It is not automatic.

Can Free Zone companies claim Small Business Relief?

No. Qualifying Free Zone Persons and members of multinational enterprise groups cannot elect for Small Business Relief.

Is Small Business Relief automatic once I qualify?

No. You have to elect for it in your Corporate Tax return for each eligible tax period.

Which decision extended Small Business Relief to 2029?

Ministerial Decision No. 131 of 2026, which amends the earlier Ministerial Decision No. 73 of 2023.

This article is general information, not tax advice. Corporate Tax rules are set by the UAE Federal Tax Authority and Ministry of Finance and may change — confirm your specific position with a registered tax agent. Sources: Ministerial Decision No. 131 of 2026; Ministerial Decision No. 73 of 2023; Federal Decree-Law No. 47 of 2022 (Article 21); UAE Ministry of Finance; UAE Federal Tax Authority (tax.gov.ae).