Small Business Relief checker: do you qualify?
A UAE resident business with revenue of AED 3,000,000 or less in the tax period and in every earlier period can elect Small Business Relief for periods ending by 31 December 2029.
A UAE resident business with revenue of AED 3,000,000 or less in the tax period and in every earlier period can elect Small Business Relief for periods ending by 31 December 2029.
Estimates only, based on the rules in force on 29 September 2026. They are not tax advice and do not replace the figures in EmaraTax.
How it works
- The relief comes from Article 21 of the Corporate Tax Law, with the detail in Ministerial Decision No. 73 of 2023.
- The test is revenue, not profit: AED 3,000,000 or less in the tax period and in every earlier tax period. Once revenue goes over the threshold in any period, the relief is closed for good.
- It applies to tax periods starting on or after 1 June 2023 and ending on or before 31 December 2029, following the extension announced by the Ministry of Finance on 7 August 2026.
- Qualifying Free Zone Persons and members of large multinational groups (Cabinet Decision No. 44 of 2020) cannot elect it.
- Electing has a cost: tax losses and net interest expenditure from a relief period cannot be carried forward, and the business must still register and file a return.
- Splitting one business into several to stay under the threshold is treated as an abusive arrangement.
Worked example
A Dubai trading LLC had revenue of AED 2,100,000 for 2024 and AED 2,400,000 for the year ending 31 December 2025, with a profit of AED 500,000 in 2025.
| Revenue, year ended 31 December 2024 | 2,100,000 |
| Revenue, year ended 31 December 2025 | 2,400,000 |
| Profit for 2025 | 500,000 |
| Tax without the relief: 9% on 125,000 | 11,250 |
| Tax with the relief elected | 0 |
Both years are under AED 3,000,000, so the relief can be elected for 2025 and saves AED 11,250.
Frequently asked questions
Is it worth electing if the business made a loss?
Often not. A loss from a relief period cannot be carried forward, while a loss from a normal period can reduce later taxable income by up to 75%. A loss-making business should compare both before electing.
Does the business still file a Corporate Tax return?
Yes. The relief is elected in the return, and the business stays registered for Corporate Tax.
What counts as revenue?
Gross revenue under the accounting standards the business uses, before costs. It is not profit.
Related terms and guides
Small Business Relief · Taxable person · Resident person · Qualifying Free Zone Person · Tax loss relief. Full guide: Corporate Tax 2026: What UAE SMEs Need to Know About SBR. More free tools: UAE tax tools.
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