The decision reflects the Ministry’s continued efforts to support small businesses and start-ups
With the introduction of Corporate Tax in UAE, it is mandatory for all the businesses to register for corporate tax. However, the standard corporate tax rate 9% is applicable to the businesses whose taxable income is above AED 375,000. But at the same time FTA offer relief to small businesses via Small Business Relief (SBR) initiative. Businesses who qualify for small business relief can submit simplified tax returns.
Under Ministerial Decision No. 131 of 2026, the existing Small Business Relief threshold will continue to apply to tax periods that end on or before 31 December 2029. The decision was issued on 29 July 2026 and amends Ministerial Decision No. 73 of 2023.
What Does This Mean for UAE Businesses?
Extension in small business relief threshold means that all the qualifying businesses can continue to avail SBR through tax periods ending on or before December 2029.
Why Is This Important?
The extension provides greater certainty for small businesses and allows eligible taxpayers to plan their Corporate Tax compliance with the relief remaining available for a longer period.
The extension in small business relief provides great deal of stability and relief to small businesses and allow them to plan their corporate tax compliance efficiently. This will also help them to focus on business growth without worrying about compliance cost. But it is highly recommended for the businesses to constantly evaluate their revenue, tax period and other eligibility conditions before claiming SBR.
Need Help with Small Business Relief?
If you are unsure whether your business qualifies for Small Business Relief or how the extension affects your Corporate Tax filing. Alpha Auditing can help you review your eligibility and prepare your Corporate Tax return.
Contact Alpha Auditing today for professional UAE Corporate Tax assistance.
