UAE extends Corporate Tax Small Business Relief until end of 2029
Firms with qualifying revenue remain eligible for simplified compliance
ABU DHABI – The UAE Ministry of Finance has extended the period during which eligible businesses can claim Small Business Relief under the Corporate Tax regime until 31 December 2029.
The move was announced through Ministerial Decision No. (131), which amends certain provisions of the Ministerial Decision on the Taxation of Corporations and Businesses.
The extension is aimed at supporting small businesses and start-ups while strengthening the country's business environment.
Extended relief
Under the amended decision, Small Business Relief can now be claimed for tax periods ending on or before 31 December 2029. The Ministry said the measure forms part of its wider efforts to help entrepreneurs grow and expand their businesses, while reinforcing the UAE's position as a leading global investment destination.
The decision also reflects the country's commitment to maintaining a competitive tax system that supports sustainable economic development, encourages compliance and aligns with international best practices.
Eligibility rules
The Ministry confirmed that the threshold introduced under Ministerial Decision No. (73) of 2023 will remain unchanged. It will continue to apply to tax periods commencing on or after 1 June 2023 and to subsequent tax periods ending on or before 31 December 2029.
Small Business Relief is available to taxable persons with annual revenue of no more than Dh3 million, allowing them to benefit from simplified Corporate Tax compliance requirements, provided they meet the conditions and requirements set out in the relevant legislation.