UAE Small Business Relief
Complete guide to Small Business Relief provisions under UAE Corporate Tax Law, including eligibility criteria, benefits, and election procedures.
Small Business Relief Key Facts
Tax Rate
0%
Effective tax rate for qualifying businesses
Revenue Threshold
AED 3,000,000
Maximum annual revenue to qualify
Eligibility Criteria
✓ Who Can Apply
- UAE resident persons (natural and juridical)
- Businesses with revenue ≤ AED 3,000,000 in current tax period
- Businesses with revenue ≤ AED 3,000,000 in previous tax period
- Must make election for each tax period
✗ Who Cannot Apply
- Qualifying Free Zone Persons
- Members of multinational groups with consolidated revenue > AED 3.15 billion
- Non-resident persons
- Businesses exceeding revenue thresholds
Benefits of Small Business Relief
Tax Benefits
- 0% Corporate Tax: Business is treated as having no taxable income
- No Tax Filing: Simplified compliance requirements
Compliance Benefits
- No Transfer Pricing Documentation: Reduced documentation requirements
- Simplified Record Keeping: Basic accounting records sufficient
Election Process
Check Eligibility
Verify that your business meets all eligibility criteria including revenue thresholds for both current and previous tax periods.
Make Election
Submit election for Small Business Relief through the FTA portal or with your tax return. Election must be made for each tax period.
Maintain Records
Keep proper accounting records to support your eligibility and election. Records must demonstrate compliance with revenue thresholds.
Annual Review
Review eligibility annually and make fresh election for each tax period. Monitor revenue to ensure continued qualification.
Important Considerations
Key Points to Remember
- • Election is required for EACH tax period - it's not automatic
- • Revenue threshold applies to BOTH current and previous periods
- • Free Zone businesses cannot elect for Small Business Relief
- • Large multinational group members are excluded
- • Other exemptions and deductions are not available when relief is elected
Need Help with Small Business Relief?
Our chartered accountants can help determine your eligibility and handle the election process to ensure you maximize your tax benefits.