Since June 1, 2023, the Small Business Relief program has been in effect in the UAE. It allows companies with an annual turnover of up to AED 3,000,000 to be exempt from corporate tax, simplify reporting, and focus on business growth.
WHAT IT IS
The relief is provided under Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 73 of 2023. If your business meets the eligibility criteria, you can file a tax return with the Small Business Relief designation — and during this period, no corporate tax will be payable.
The relief is provided under Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 73 of 2023. If your business meets the eligibility criteria, you can file a tax return with the Small Business Relief designation — and during this period, no corporate tax will be payable.
WHO QUALIFIES
- UAE residents (both individuals and legal entities);
- Companies with an annual revenue not exceeding AED 3,000,000 (including prior periods);
- Companies not part of a multinational enterprise (MNE) group;
- Companies that do not hold Qualifying Free Zone Person (QFZP) status.
WHO DOES NOT QUALIFY
- Members of multinational enterprise (MNE) groups with total consolidated revenue exceeding AED 3.15 billion;
- Companies classified as Qualifying Free Zone Persons (QFZP);
- Businesses that have been artificially split to stay within the income threshold (this is monitored by the authorities).
BENEFITS OF THE RELIEF
- No need to calculate taxable profit;
- Simplified tax return filing;
- No corporate tax payment required;
- Exemption from transfer pricing documentation;
- Option to use the cash basis accounting method.
HOW TO APPLY
VALIDITY PERIOD
The relief applies to tax periods ending on or before December 31, 2026.
- Register with the Federal Tax Authority (FTA) and obtain a TRN;
- File your tax return with the Small Business Relief election;
- Maintain records and proof of turnover.
VALIDITY PERIOD
The relief applies to tax periods ending on or before December 31, 2026.
NEED HELP CLAIMING THE RELIEF?
FLEXZO experts can help you:
- Assess whether your business meets the eligibility criteria;
- Prepare documents and tax returns accurately;
- Apply the relief correctly — tailored to your industry and corporate structure.
📩 Contact us — we’ll make the UAE tax system simple and safe for your business.
