Direct answer: The UAE has extended Corporate Tax Small Business Relief to tax periods ending on or before 31 December 2029. The revenue threshold remains AED 3 million. Eligible businesses still need to register, elect the relief in their Corporate Tax return, file on time and keep supporting records.[4][3]
What changed?
Ministerial Decision No. 131 extends the period for claiming Small Business Relief from the previous 2026 end date to tax periods ending on or before 31 December 2029. The announcement says the threshold established under Ministerial Decision No. 73 of 2023 continues to apply.[4]
| Rule | Current position |
|---|---|
| Relief end date | Tax periods ending on or before 31 December 2029 |
| Revenue threshold | AED 3 million or less |
| Return required? | Yes—a simplified Corporate Tax return is still required |
| How to claim | Elect Small Business Relief in the Corporate Tax return |
| Standard filing deadline | Within nine months after the end of the relevant tax period |
Important: This extension changes the relief window; it does not cancel existing filing deadlines.[3]
60-second eligibility checklist
You may be eligible only if every applicable answer below supports a claim:
- Resident Person: The claimant is a Resident Person for UAE Corporate Tax purposes.
- Revenue: Revenue is no more than AED 3 million in the relevant tax period.
- Previous periods: Revenue did not exceed AED 3 million in any relevant previous tax period.
- Not a qualifying free-zone claimant: The claimant is not a Qualifying Free Zone Person.
- Not an MNE constituent company: The claimant is not a Constituent Company of the multinational group described in the decision.
- Election made: The relief is actively elected in the Corporate Tax return.
- Evidence retained: Accounting and transaction records can support the revenue figure and eligibility.
Ministerial Decision No. 73 sets the AED 3 million test, the Resident Person requirement and the exclusions for Qualifying Free Zone Persons and specified multinational-group companies. It also says that exceeding the threshold in a relevant or previous tax period prevents the election.[2]
What to do now: practical filing checklist
- Confirm your tax period end date. Your return deadline normally falls nine months after that date.[3]
- Check Corporate Tax registration. Small Business Relief does not remove the registration obligation where registration is required.[3]
- Reconcile revenue. Use the accounting standards accepted in the UAE and review the current and relevant previous tax periods.[2]
- Check exclusions. Confirm whether the entity is a Qualifying Free Zone Person or a constituent company of the specified multinational group.[2]
- Review the trade-offs. An election can affect the treatment of tax losses and net interest expenditure for that period.[2]
- Prepare supporting records. Keep transaction, asset, liability and ownership-interest records relevant to the return.[3]
- Elect the relief in EmaraTax. Eligibility alone is not enough; the FTA says the election must be made through the Corporate Tax return.[3]
- Submit the simplified return by the deadline. Save the submission confirmation and supporting workpapers.
September 30, 2026 deadline: who it affects
Taxpayers whose financial year ended on 31 December 2025 must submit the Corporate Tax return and settle any Corporate Tax due by 30 September 2026, according to the FTA.[3]
Claiming Small Business Relief does not remove this deadline. An eligible claimant files a simplified return and makes the election inside that return.[3]
Three mistakes to avoid
1. Treating AED 3 million as a profit test
The threshold is based on revenue, not profit. A low-profit business can still fail the test if its revenue exceeds the threshold.[2]
2. Assuming “no taxable income” means “no return”
The relief can treat an eligible claimant as having no taxable income for the period, but the FTA still requires a Corporate Tax return. The election is made in that return.[3]
3. Splitting one business to remain below the threshold
Ministerial Decision No. 73 contains an artificial-separation rule. Where a business is fragmented to obtain a Corporate Tax advantage, the FTA can examine the commercial purpose and the financial, economic and organisational links between the persons involved.[2]
Should every eligible business elect the relief?
Not automatically. The decision says tax losses incurred in a period for which Small Business Relief is elected cannot be carried forward. It contains a similar restriction for net interest expenditure incurred in that elected period.[2]
A business expecting losses, significant financing costs, a restructuring or a change in free-zone status should compare the available outcomes with a qualified UAE tax adviser before filing.
FAQ
Has UAE Small Business Relief been extended to 2029?
Yes. Ministerial Decision No. 131 extends the claim period to tax periods ending on or before 31 December 2029.[4]
Did the AED 3 million threshold increase?
No. The announcement says the AED 3 million annual revenue threshold continues to apply.[4]
Do I need to file a Corporate Tax return if I claim the relief?
Yes. The FTA says eligible businesses must elect the relief through their return and submit a simplified Corporate Tax return by the applicable deadline.[3]
What if revenue exceeded AED 3 million in an earlier period?
Ministerial Decision No. 73 says a claimant cannot elect the relief if revenue exceeded AED 3 million in a relevant or previous tax period.[2]
Can a free-zone business claim Small Business Relief?
A business is not excluded merely because it operates in a free zone, but a Qualifying Free Zone Person cannot elect Small Business Relief under Ministerial Decision No. 73.[2] Confirm the entity’s actual Corporate Tax status before filing.
Does the 2029 extension postpone my 2026 return?
No. The relief extension does not postpone return deadlines. For example, a taxpayer with a financial year ending 31 December 2025 has a 30 September 2026 filing deadline.[3]
This article is a practical summary of public information, not personalised tax or legal advice. Check the latest Ministry of Finance and FTA material or consult an FTA-approved tax agent for your facts.
Sources:
[2] UAE Ministry of Finance — Ministerial Decision No. 73 of 2023
[3] Federal Tax Authority — Small Business Relief filing reminder, 3 August 2026
[4] WAM report — Ministry of Finance extends Small Business Relief until 31 December 2029, 7 August 2026