What Is "Small Business Relief" and Do You Qualify?
August 7, 2024
Noor Tax Advisory
2 min read
If you're a small business owner in the UAE, there's good news: you might not need to pay Corporate Tax at all.
Small Business Relief Qualification Flowchart
1
Are you UAE-based?
Must be a Resident Person in the UAE
2
Revenue ≤ AED 3M?
Annual revenue must be AED 3 million or less
3
Not Free Zone/MNE?
Must not be Qualifying Free Zone Person or part of Multinational Group
✓
Apply for Small Business Relief
You qualify for 0% Corporate Tax!
What is Small Business Relief?
A tax relief that lets eligible businesses be treated as if they have no taxable income, meaning you don't pay any Corporate Tax.
Who Can Claim It?
Requirements
- • Your revenue is AED 3 million or less
- • You're a Resident Person
- • You're not part of a Multinational Group
- • You're not a Qualifying Free Zone Person
Disqualifiers
- • Revenue exceeds AED 3 million
- • Non-resident business
- • Part of multinational group
- • Qualifying Free Zone Person
How to Apply?
You must elect for it in your Corporate Tax Return (within EmaraTax). It's not automatic.
Important: Manual Election Required
Small Business Relief is not automatic. You must actively select it when filing your Corporate Tax Return through EmaraTax, even if you qualify.
Why This Matters:
You still have to file the return, but it'll be simpler – and you won't owe tax.
Unsure About Your Eligibility?
Our tax experts can review your business structure and revenue to determine if you qualify for Small Business Relief, ensuring you don't miss out on potential tax savings.
Check Your Eligibility