Small Business Relief (SBR) can reduce the Corporate Tax compliance burden for eligible UAE resident persons. Under the current FTA summary, a resident person may elect for the relief for a tax period where revenue is no more than AED 3 million in that period and in all previous tax periods, subject to the detailed conditions. The relief is available only for tax periods ending on or before 31 December 2026 under the relevant Ministerial Decision.
Important limits
SBR is an election, not an automatic exemption from every Corporate Tax obligation. A Qualifying Free Zone Person and a member of a multinational enterprise group with consolidated revenue above AED 3.15 billion cannot elect under the FTA summary. Choosing SBR also affects the availability of other exemptions, reliefs and deductions for that period, and transfer-pricing obligations are not erased: the arm’s-length principle still applies.
Do not skip the return
The FTA has specifically reminded eligible taxpayers that they must submit the required simplified Corporate Tax Return within the statutory deadline. Keep revenue calculations and supporting records, test prior-period eligibility, make the election correctly, and diarise the filing date. If a previous period exceeded the threshold, assess eligibility carefully rather than relying on the current year alone.
Read the FTA Small Business Relief conditions and its September 2026 filing reminder. Rules are period-specific; get advice if your circumstances are complex.
Need support with your business? A2XL helps UAE organisations with tax consultancy and practical financial processes.