Small businesses in the UAE have received an important update concerning Corporate Tax compliance. In August 2026, the UAE Ministry of Finance announced that the Small Business Relief period has been extended to tax periods ending on or before 31 December 2029. The relief applies to eligible taxable persons whose annual revenue does not exceed AED 3 million, subject to the conditions established under UAE Corporate Tax legislation. The extension is intended to provide continued support for small businesses and start-ups while they develop their operations. Businesses should review the applicable conditions and maintain proper financial records when determining their Corporate Tax obligations.

Relief Period Extended

The UAE Ministry of Finance announced in August 2026 that the period for claiming Small Business Relief has been extended to tax periods ending on or before 31 December 2029. The change was introduced through Ministerial Decision No. 131, which amended provisions relating to the taxation of corporations and businesses. The extension gives qualifying businesses additional time to benefit from the relief under the applicable Corporate Tax framework. Businesses should still review the specific conditions before determining whether they qualify.

AED 3 Million Revenue Threshold

Under the applicable decision, Small Business Relief is available to Taxable Persons whose annual revenue does not exceed AED 3 million, subject to the conditions and requirements set out in UAE Corporate Tax legislation. The Ministry states that this threshold continues to apply for relevant tax periods beginning on or after 1 June 2023 and ending on or before 31 December 2029. Businesses should therefore monitor their annual revenue and maintain appropriate financial records when assessing eligibility.

Support for Small Businesses

The Ministry of Finance describes the extension as part of its efforts to support small businesses and start-ups and strengthen the UAE’s business environment. Small businesses are an important part of the country’s economic diversification strategy, and government programmes provide support in areas including financing, business development and training. The Small Business Relief extension forms part of the broader tax framework intended to provide simplified Corporate Tax compliance for qualifying businesses.

Importance of Proper Records

Although Small Business Relief can simplify Corporate Tax compliance for eligible businesses, companies still need to understand the relevant requirements and maintain reliable financial information. Revenue figures are particularly important because the AED 3 million threshold is part of the eligibility framework. Keeping accounting records organised can help businesses determine their position and provide accurate information when completing their tax-related obligations. The Ministry advises businesses to consider the relevant legislation and conditions when assessing eligibility.