Definition

Small Business Relief is a Corporate Tax concession in the UAE allowing eligible businesses to be treated as if they have no taxable income, reducing compliance costs.

Key points

• Applies to businesses with revenue below AED 3 million for tax periods until 31 December 2026.
• Must elect Small Business Relief in the Corporate Tax Return.
• Businesses still need to maintain accounting records.
• Not available for qualifying free zone persons or multinational groups.

Practical example

A consultancy with annual revenue of AED 2.5 million elects Small Business Relief. It files a corporate tax return but pays 0% tax.

Why it matters

Small Business Relief supports startups and SMEs by reducing tax burdens while encouraging compliance.