Small Business Relief extended to 2029: what it changes for your company
Not updated everywhere yet: on 19 October 2026, the FTA Small Business Relief page and guide did not yet mention the new end date. The Ministerial Decision is the legal text; FTA guidance may be updated later.
What the official text says
Ministerial Decision No. 131 of 2026 replaces one clause of Ministerial Decision No. 73 of 2023. The new clause says the 3,000,000 AED limit applies to tax years starting on or after 1 June 2023 and “shall continue to apply to subsequent Tax Periods that end on or before 31 December 2029”.
It was signed on 29 July 2026 and takes effect the day after it is published. The Ministry of Finance announced it on 7 August 2026 and published the text on its legislation page.
What it changes
Before, the relief stopped with tax years ending on 31 December 2026. Now it covers three more years.
Example: a company whose tax year follows the calendar year can choose the relief for 2026, 2027, 2028 and 2029, if it meets the conditions in each of those years.
What does not change
Your income (before costs, without VAT; official term: revenue) must be 3,000,000 AED or less in the tax year and in every earlier tax year. Going above it once closes the relief for good.
It is not open to businesses using the free zone 0% rate (Qualifying Free Zone Person) or to members of very large international groups (consolidated revenue above 3.15 billion AED).
You choose it in each return. You still register for Corporate Tax, file a return every year and keep your records for 7 years.
In a year with the relief, losses from that year cannot be carried forward. Splitting one business into several to stay under the limit can be treated as tax avoidance.
What to do now
Check your own case with the free Small Business Relief calculator.
Note your dates: the return and any payment are due 9 months after your tax year ends (30 September 2027 for a tax year ending on 31 December 2026).
Keep every receipt and invoice: the relief does not remove the duty to keep records.
If you are close to 3,000,000 AED, in a free zone, or own more than one company, ask an FTA-registered tax agent before you choose the relief.
Check it with the free calculator: Small Business Relief calculator →
Official sources
- Ministerial Decision No. 131 of 2026 (official text, Ministry of Finance) — Art. 1 and 2
- Ministry of Finance, financial legislation page (lists Decision No. 131 of 2026) — 2026
- WAM, 7 August 2026: Ministry of Finance extends Small Business Relief until 31 December 2029 — Announcement
- Ministerial Decision No. 73 of 2023 on Small Business Relief — Art. 2 and 3
- FTA Corporate Tax topic: Small Business Relief — Conditions and examples
- Federal Decree-Law No. 47 of 2022 on Corporate Tax (consolidated) — Art. 21
General information, not tax advice. Your situation may differ.