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Small Business Relief Under UAE Corporate Tax

TaxWatch Team6 min read
UAECorporate Tax
# Small Business Relief Under UAE Corporate Tax

The UAE Ministry of Finance has clarified the small business relief provisions under the corporate tax law, offering significant benefits for qualifying businesses.

## Eligibility Criteria

To qualify for Small Business Relief, a business must meet ALL of the following:

- **Revenue threshold**: Total revenue below AED 3 million in the relevant tax period
- **Resident person**: Must be a UAE tax resident
- **Not part of MNE**: Cannot be a member of a multinational enterprise group
- **Election required**: Must actively elect for Small Business Relief

## Benefits of Small Business Relief

Qualifying businesses that elect for this relief:

- Are treated as having **no taxable income** for the tax period
- Have **simplified compliance** requirements
- Still must **register** for corporate tax
- Still must **file** an annual tax return

Contact TaxWatch for guidance on whether Small Business Relief is right for your business.

Last updated: January 14, 2026

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