Small Business Relief & Your Company

With the implementation of the UAE Corporate Tax, certain small businesses are eligible to apply for tax relief until the end of 2026.

The 'Small Business Relief' initiative aims to assist small businesses operating in the UAE by reducing the compliance requirements associated with the Corporate Tax regime. This relief alleviates the burden of calculating and paying Corporate Tax for eligible entities.

The eligible entities include those with revenues of under AED 3.000.000. The Ministry has set a three-year timeframe, specifically till December 31st, 2026 where the relief will remain in place.

To qualify for Small Business Relief, businesses must be 'resident persons' operating in the UAE, excluding those based in Free Zones.

As for the businesses conducted by individuals, if the individual generates revenues of AED 1.000.000 plus, then the Corporate Tax comes into effect. Thus, it is advised for these individuals considering setting up their licensed companies. Hence, if their annual revenues fall below AED 3.000.000, they can apply for Small Business Relief.

The application period for Small Business Relief runs from June 1st, 2023 to December 31st, 2026. The subject to approval is with the Federal Tax Authority (FTA).