Small Business Relief in UAE: The AED 3 Million Threshold Explained
Find out how your startup or SME can benefit from the UAE Corporate Tax Small Business Relief until 2026.
Small Business Relief in UAE: The AED 3 Million Threshold Explained
To support startups and Small and Medium Enterprises (SMEs), the UAE government introduced the Small Business Relief scheme under the Corporate Tax framework.
What is Small Business Relief?
Eligible resident businesses with a revenue of AED 3 million or less in a relevant tax period can elect to be treated as having no taxable income. This means you won't pay any Corporate Tax, even if your profit margin is high.
Key Conditions
- Revenue Limit: Total revenue for the current and all previous tax periods must not exceed AED 3 million.
- Timeline: This relief is available for tax periods ending on or before December 31, 2026.
- Exclusions: Qualifying Free Zone Persons (QFZPs) and Multinational Enterprises (MNEs) cannot claim this relief.
How to Claim It
Relief is not automatic. You must still register for Corporate Tax, maintain proper accounting records, and formally elect the Small Business Relief when filing your Corporate Tax Return on the EmaraTax portal.
Curatax LLC can help your SME maintain compliant financial records and correctly file for Small Business Relief.