Small Business Relief: who qualifies and what changes after 2026

Small Business Relief is one of the most useful Corporate Tax rules for UAE SMEs. If you qualify and elect for it, your business is treated as having no taxable income for that tax period. You still have to register and file a return.

Who qualifies

• You are a UAE resident person for Corporate Tax purposes.
• Your revenue is AED 3 million or less in the relevant tax period and in each previous tax period.
• The tax period started on or after 1 June 2023 and ends on or before 31 December 2026.

Who cannot use it

• Qualifying Free Zone Persons
• Members of multinational groups with consolidated revenue above AED 3.15 billion

Revenue is measured under the accounting standards accepted in the UAE, so your books need to be accurate. Splitting a business artificially to stay under the threshold is caught by the anti-abuse rules.

The trade-offs

If you elect for the relief, you cannot carry forward tax losses or disallowed interest from that period. For a business that expects losses in its early years, it is worth checking whether the relief is the best choice before electing.

What happens after 2026

The current relief covers tax periods ending on or before 31 December 2026. A new Ministerial Decision would be needed to extend it to later periods. Until one is issued, businesses should plan for 2027 on the basis that the relief may not be available, and check for updates from the Ministry of Finance.

How NAMAA can help

We check whether you qualify, compare the relief with carrying losses forward, and include the election in your Corporate Tax return.