UAE Extends Corporate Tax Small Business Relief to 31 December 2029

The Ministry of Finance has issued Ministerial Decision No. 131 of 2026, extending Small Business Relief (SBR) under the UAE Corporate Tax regime by three years. The Decision was issued on 29 July 2026 and announced on 7 August 2026.

SBR was previously available only for tax periods ending on or before 31 December 2026. It is now available for tax periods ending on or before 31 December 2029.

How SBR works

A business that elects SBR is treated as having no taxable income for that period, so no Corporate Tax is payable. It can also file a simplified Corporate Tax return.

Who can elect SBR

• UAE resident taxable persons
• Revenue of AED 3 million or less in the tax period and in every previous tax period
• Not a Qualifying Free Zone Person
• Not part of a multinational group with consolidated revenue above AED 3.15 billion

Once revenue goes above AED 3 million in any period, SBR is no longer available for that period or any later period.

What has not changed

• SBR is not automatic. It must be elected in each Corporate Tax return.
• Businesses must still register for Corporate Tax, file returns on time and keep proper records.
• Transfer pricing rules still apply where relevant.

Official source: UAE Ministry of Finance - Ministerial Decision No. 131 of 2026 (PDF) | Federal Tax Authority - Small Business Relief