What is Small Business Relief?

Small Business Relief is a UAE Corporate Tax election allowing a resident taxable person with revenue of AED 3 million or less to be treated as having no taxable income for that period. It is available for tax periods ending on or before 31 December 2026, and the business must still register and file.

Who can elect it

A resident taxable person whose revenue does not exceed AED 3 million in the current tax period and in all previous relevant tax periods. The test is on revenue, not profit — so a business with thin margins and high turnover can be excluded while a highly profitable small business qualifies.

The trade-off

It simplifies compliance substantially, but tax losses arising in a period where the relief is claimed cannot be carried forward, and interest limitation carry-forwards are affected too. For a business investing ahead of revenue — spending now to earn later — electing in an early loss-making year can be actively unhelpful, because it discards losses that would have sheltered future profits.

What it does not remove

Registration and filing. A business claiming the relief still registers for Corporate Tax and still submits a return within nine months of its period end. The administrative penalty for failing to do so applies whether or not any tax was due.

Reviewed 18 August 2026 by Ahmed Nabil Selim. UAE tax rates, thresholds and deadlines change — confirm the position for your period before relying on it.