The UAE has extended the period during which eligible businesses can claim Small Business Relief until 2029, giving small and micro businesses more time to benefit from the Corporate Tax relief scheme.
The Ministry of Finance issued Ministerial Decision No. 131, amending provisions of the UAE’s Corporate Tax rules. Under the decision, Small Business Relief can now be claimed for tax periods ending on or before December 31, 2029.
UAE Small Business Relief 2029 Extended
Small Business Relief was introduced to support eligible small businesses by reducing their Corporate Tax burden and compliance requirements.
The extension means eligible businesses can continue to use the relief for qualifying tax periods through the end of 2029, provided they meet the conditions set under the Corporate Tax rules.
The measure is particularly relevant to small and micro businesses operating in the UAE that fall within the applicable revenue limit.
AED 3 Million Threshold Remains
The extension does not mean that the UAE has increased the revenue threshold for Small Business Relief.
The existing AED 3 million revenue threshold remains applicable under the current rules. Businesses must also meet other eligibility requirements to claim the relief. The relief is subject to specific eligibility conditions, so businesses should check the applicable Corporate Tax rules before making an election.
For example, a UAE resident business with revenue of AED 3 million or less may be eligible to elect for Small Business Relief, provided it meets the other conditions.
What the Extension Means for Businesses
Small Business Relief can allow an eligible business to be treated as having no Taxable Income for the relevant tax period when it meets the required conditions and makes the relief election. The scheme is designed to reduce the Corporate Tax and compliance burden for qualifying smaller businesses.
The extension gives eligible small businesses more time to benefit from the relief and greater certainty when planning their tax affairs.
However, businesses should not assume that Small Business Relief automatically applies to them. Eligibility depends on the applicable Corporate Tax rules, including the revenue limit and other conditions.
Businesses should therefore review their tax position and records before making a Small Business Relief election.
The UAE Small Business Relief 2029 extension provides continued support for eligible small businesses while keeping the existing AED 3 million threshold in place.
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