The UAE Ministry of Finance has extended its Small Business Relief scheme for corporate tax purposes by three years, allowing eligible businesses to continue claiming the benefit through tax periods ending on or before 31 December 2029.
Ministerial Decision No. 131 preserves the existing AED 3 million annual revenue threshold introduced under Ministerial Decision No. 73 of 2023, under which qualifying UAE tax-resident businesses can be treated as having no taxable income and therefore pay zero corporate tax. The extension applies to tax periods beginning on or after 1 June 2023, maintaining continuity for businesses that have been electing the relief since the UAE corporate tax regime launched. The scheme is unavailable to Qualifying Free Zone Persons and members of Multinational Enterprise Groups.
The Ministry said the decision is intended to support small businesses and entrepreneurs, reduce compliance costs for start-ups, and strengthen the UAE's broader business environment as the country continues to attract investment and company formation.
Gulf Economist Staff Writer