Small Business Corporate Tax Relief in the UAE Extended Through 2029

The Small Business Relief programme under the UAE’s Corporate Tax regime has been extended through tax periods ending on or before December 31st, 2029, giving eligible small businesses another three years to claim the relief.

Introduced through Ministerial Decision No. 131 of 2026, the change moves the programme’s previous end date of December 31st, 2026, while keeping its revenue threshold unchanged.

Businesses generating annual revenue of up to Dh 3 million can elect to be treated as having no taxable income for the relevant tax period, effectively reducing their Corporate Tax liability to zero.

The relief is not automatic. Eligible businesses must elect for it when filing their Corporate Tax return and remain compliant with registration, filing and record-keeping requirements.

Certain categories remain excluded regardless of revenue, including Qualifying Free Zone Persons and members of larger multinational enterprise groups.

The Dh 3 million threshold was originally established under Ministerial Decision No. 73 of 2023. The extension comes within the wider Corporate Tax framework, which applies to financial years beginning on or after June 1st, 2023, with a standard 9% rate on taxable income above Dh 375,000.