Small Business Relief and free zones
Am I eligible for Small Business Relief (no Corporate Tax for small businesses)?
Depends on the details: keep good documents
The basic rule
A UAE business can choose to be treated as having no taxable profit for a tax year when its income for that year and every earlier year is 3,000,000 AED or less (official terms: resident person, revenue, elect). Ministerial Decision No. 131 of 2026 extended this to tax years ending on or before 31 December 2029 (official text published by the Ministry of Finance; issued 29 July 2026, in force from the day after publication).
When it is different
- Revenue means all revenue in the financial statements, not just profit and not just one activity.
- Not available to Qualifying Free Zone Persons or constituent companies of multinational groups with consolidated revenue above AED 3.15 billion.
- It must be elected for each period, in the return. You still register, file and keep records.
- While it applies, losses and disallowed net interest from that period cannot be carried forward, and other reliefs are not used for that period.
Documents to keep
- Financial statements or revenue records for every period
- Proof of residence (licence)
- The election in each return
How safe is it?
Depends on the details: keep good documents Medium: the conditions are strict and some are permanent (see the traps entry).
When to ask a professional
Ask if your revenue is near AED 3,000,000, if you are in a free zone, or if you have more than one company. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.
Check it with the free calculator: Small Business Relief calculator →
Sources
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 21(1)–(2)
- Ministerial Decision No. 73 of 2023 on Small Business Relief — Art. 2 and 3
- Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief (official text, Ministry of Finance, issued 29 July 2026) — Art. 1 (amending MD 73/2023 Art. 2(2))
- FTA Corporate Tax topic: Small Business Relief — Conditions and example
General information, not tax advice. Your situation may differ.
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Related questions
- I am a freelancer with a personal licence. Am I subject to Corporate Tax?
- What are the traps with Small Business Relief?
- I have a free zone company. Do I pay 0% or use Small Business Relief?
- What rate does my company pay if it does not use Small Business Relief?
- Can I keep my records on a cash basis (when money comes in or goes out) instead of accruals?