If your business earns less than AED 3 million a year, there’s good news. The UAE Ministry of Finance has extended Small Business Relief under the Corporate Tax Law all the way to 31 December 2029. This means eligible small businesses and start-ups get more time to enjoy simpler tax rules and a lighter compliance load.

Here’s what changed, who qualifies, and what you need to do next.

UAE Small Business

What Is Small Business Relief?

Small Business Relief is a Corporate Tax benefit introduced to support startups and small businesses.

Eligible businesses can elect for this relief, allowing them to be treated as having no taxable income for the relevant tax period. This reduces their corporate tax burden and simplifies certain compliance requirements.

What Changed?

The Ministry of Finance issued Ministerial Decision No. 131, extending the relief period. Previously, the relief was set to apply for a limited number of tax periods. Now, it covers tax periods ending on or before 31 December 2029.

The AED 3 million annual revenue threshold, first introduced under Ministerial Decision No. 73 of 2023, stays exactly the same. It applies to tax periods starting on or after 1 June 2023 and continues through this extended timeline.

In short: nothing gets harder, you just get more years to benefit.

Who Qualifies for Small Business Relief?

Your business may be eligible if:

  • Your annual revenue is AED 3 million or less
  • You meet the other conditions listed under UAE Corporate Tax legislation
  • Your tax period ends on or before 31 December 2029

Eligibility isn’t automatic. It needs to be assessed and claimed correctly, which is where many small businesses run into trouble.

What Does This Mean for Your Business?

If you qualify, this extension helps you:

  • Lower your Corporate Tax burden, where applicable
  • Simplify your tax compliance instead of dealing with full Corporate Tax calculations
  • Save time and resources that you can put back into growing your business

What You Still Need to Do

Even with the relief extended, businesses are still expected to:

  • Keep accurate and up-to-date financial records
  • Register for Corporate Tax if required
  • File Corporate Tax returns within the required deadlines.
  • Confirm they meet all eligibility conditions before claiming relief

Missing any of these steps can lead to penalties, even if your business technically qualifies for relief.

How Miqat Helps Your Business Stay Compliant

Corporate Tax rules can be confusing, especially with updates like this one. At Miqat, our tax experts make it simple. We help UAE businesses handle every part of Corporate Tax compliance, so you don’t have to figure it out alone.

Our services include:

  • Corporate Tax Registration
  • Corporate Tax Return Filing
  • Small Business Relief Eligibility Assessment
  • Bookkeeping & Accounting
  • Corporate Tax Advisory

Whether you’re a start-up, an SME, or an established business, we help you stay compliant while making the most of every relief you’re entitled to.

Frequently Asked Questions

Until when has UAE Small Business Relief been extended?

Small Business Relief now applies to tax periods ending on or before 31 December 2029, following Ministerial Decision No. 131.

Who is eligible for Small Business Relief in the UAE?

Businesses with annual revenue of AED 3 million or less can be eligible, provided they meet the conditions set out in UAE Corporate Tax Law.

Do I still need to file a Corporate Tax return if I qualify for relief?

Yes. Even businesses claiming Small Business Relief must register for Corporate Tax (if required) and file returns on time.

Has the AED 3 million revenue threshold changed?

No. The threshold remains the same as set under Ministerial Decision No. 73 of 2023.

Is Your Business Sitting on Unclaimed Tax Relief?

Thousands of small businesses in the UAE qualify for this relief and don’t even know it, or claim it the wrong way and end up exposed to penalties later. Don’t leave it to guesswork.

Check your eligibility now, and have Miqat’s tax experts confirm your status, potential claims, and necessary corrections before the next filing deadline. 

Book an appointment with Miqat to get professional advice.