Relief Extended
to 2029.
Do You Qualify?
The UAE has extended Small Business Relief to tax periods ending on or before 31 December 2029.
Eligible businesses are treated as having no taxable income — and file under a far lighter compliance regime. Take the free test and find out where you stand.
- 7 questions, about 2 minutes
- Result shown instantly, free
- Built on the current FTA rules
- No obligation, no sales call
Preliminary guidance only. Your answers are not stored unless you choose to send them to us at the end.
Get this in writing, free
Send us your answers and a UAE tax adviser will confirm your position against the current rules, in writing, within one business day.
Your details stay private · Part of the Reliant Surveyors group
Not a Lower Rate.
No Taxable Income At All.
Small Business Relief is an election, not an automatic exemption. Where it applies, an eligible business is treated as having derived no taxable income for the period — and files under a materially simpler regime.
What you gain
- No corporate tax payable for the period — you are treated as having no taxable income, so the 9% never bites.
- A simplified tax return. No full computation of taxable income to prepare and support.
- Relief from transfer pricing documentation requirements for the period in which the election applies.
- Cash-basis accounting is available, rather than full accrual preparation.
- Four more years of runway. The extension carries the relief through to periods ending 31 December 2029.
What you give up
- Tax losses cannot be carried forward from a period in which you elect for the relief.
- Disallowed net interest expenditure arising in that period cannot be carried forward either.
- You must still register and file. The relief removes the tax, not the obligation to be in the system.
- It is an annual election. Cross the threshold in any period and the relief stops — permanently, on the current rules.
This is exactly why the election is worth a second opinion: a loss-making start-up may be better off declining the relief and banking the losses. We tell you which side you are on.
Six Things That Decide It.
Small Business Relief may be available to eligible UAE Resident Taxable Persons whose revenue stays under the prescribed threshold, subject to the applicable Corporate Tax rules and conditions. These are the factors our test walks through.
Annual business revenue
Revenue must not exceed AED 3,000,000 in the relevant tax period — and must not have exceeded it in any previous tax period since the regime began.
UAE tax residency
The relief is for Resident Taxable Persons — juridical persons incorporated or effectively managed in the UAE, and natural persons conducting business here.
Business structure & ownership
Qualifying Free Zone Persons claiming the 0% free zone regime are outside the relief, as are members of large multinational groups.
Related-party & connected persons
Revenue and structure are assessed on the real economic picture. Artificial separation of a business to stay under the threshold is challengeable by the FTA.
Corporate tax registration
You must be registered for UAE Corporate Tax and file a return for the period. The election is made in that return — it is not granted automatically.
The relief window
The election is available for tax periods ending on or before 31 December 2029, following the extension under Ministerial Decision No. 131 of 2026.
Test, Confirm,
Then Elect
The online test gives you a preliminary read in two minutes. This is how we turn that into a filed position you can defend.
Take the free test
Seven questions covering revenue, residency, structure and registration. Your result appears immediately — nothing is held back behind a form.
We verify it in writing
Send us your answers and a UAE tax adviser checks them against your real figures, structure and filing history — then replies within one business day.
We make the election
If electing is the right call, we register you where needed, prepare the return and make the election properly — with the supporting position documented.
Is the relief automatic if my revenue is under AED 3 million?
No. It is an election you make in your corporate tax return for the relevant period. If you do not register, file and elect, you do not get it — however small your revenue is.
What exactly changed with the extension?
Ministerial Decision No. 131 of 2026 extended the period in which eligible businesses can claim the relief to tax periods ending on or before 31 December 2029. It had been due to end with periods ending 31 December 2026. The AED 3,000,000 revenue threshold set under Ministerial Decision No. 73 of 2023 is unchanged.
My revenue was over AED 3 million two years ago but is under now. Do I qualify?
On the current rules, no. The condition looks at the relevant tax period and all previous tax periods. Once revenue has exceeded the threshold in any period, the relief is not available afterwards. This is the most commonly misunderstood condition — worth confirming against your actual filed figures.
I am in a free zone. Can I still claim it?
A Qualifying Free Zone Person benefiting from the 0% free zone regime cannot also claim Small Business Relief. A free zone company that is not a QFZP may be able to — it depends on whether you meet the qualifying conditions. The test asks this directly.
Should I always elect if I am eligible?
Not necessarily. Electing means you cannot carry forward tax losses or disallowed net interest expenditure from that period. A business making losses now but expecting profits later can be materially better off declining the relief and preserving those losses. It is a modelling question — we will run it with you.
Does the relief remove my filing obligations?
No. You still need to be registered for corporate tax and still need to file a return — a simplified one. The relief removes the tax, not the compliance. Missing registration or filing deadlines still exposes you to FTA penalties.
Is this test tax advice?
No. It is a preliminary indication based only on the answers you give, to help you decide whether the question is worth pursuing. It does not constitute tax or legal advice and does not account for your full circumstances. Confirm your position with a qualified adviser before you file or elect.
Find Out Before You File, Not After.
Tell us where your business stands and a UAE tax adviser will confirm, in writing, whether Small Business Relief is available to you — and whether electing it is actually in your interest.
- Free eligibility review against the current FTA rules
- Loss carry-forward trade-off modelled, not assumed
- Fixed fees agreed before we start — no obligation
Free Eligibility Check
Takes 30 seconds. A UAE tax adviser replies within one business day.
Your details stay private · Part of the Reliant Surveyors group
Disclaimer. Eligibility for Small Business Relief is subject to the applicable UAE Corporate Tax legislation and conditions, including Federal Decree-Law No. 47 of 2022, Ministerial Decision No. 73 of 2023 and Ministerial Decision No. 131 of 2026. The eligibility test on this page is for preliminary guidance only, is based solely on the answers provided, and does not constitute tax or legal advice.
No adviser-client relationship is created by completing the test. You should not act, or refrain from acting, on the basis of the result alone. Confirm your position with a qualified tax adviser before registering, filing or making any election. Valunxt Corporate Services accepts no liability for decisions taken on the basis of the preliminary result.