If you are a small business owner in the UAE, there’s good news for you. The UAE government has introduced a special tax benefit called Small Business Relief under the Corporate Tax Law, to help small and growing companies reduce their tax burden.
This guide is written in simple, easy-to-understand language, covering everything you need to know about Small Business Relief UAE Corporate Tax. Whether you're a freelancer, startup, or managing a small company, this blog will walk you through the eligibility, process, benefits, and how to apply—step by step.
Let’s understand how this initiative works and how you can benefit from it.
Small Business Relief is a special tax exemption scheme introduced by the UAE government as part of its new Corporate Tax Law. It allows eligible businesses to be treated as if they have no taxable income, meaning they won’t pay corporate tax, if certain conditions are met.
This tax relief is available temporarily, from 1 June 2023 to 31 December 2026, and is aimed at supporting smaller companies as they grow.
Legal Basis for the Relief
This programme is backed by:
Not every business qualifies. To benefit from Small Business Relief UAE Corporate Tax, you must meet the following eligibility conditions:
You must be a resident taxable person
This means your business must be based in the UAE. Both individuals running businesses and companies registered in the UAE can qualify.
Annual revenue must not exceed AED 3 million
Your total business revenue must be AED 3 million or less for the current tax period and all previous tax periods. If it goes even 1 dirham above that, you won’t qualify.
You must make an official election
You have to elect to be treated under Small Business Relief while filing your tax return. This is done through the Emara Tax portal.
Who is NOT eligible?
Here’s how to claim Small Business Relief Corporate Tax using the EmaraTax system.
To file for Small Business Relief UAE Corporate Tax exemption, keep these ready:
| Tax Year | Application Deadline | Revenue Threshold |
|---|---|---|
| 2024 | March 2025 | AED 3 million |
| 2025 | March 2026 | AED 3 million |
| 2026 | March 2027 | AED 3 million |
Always apply before the Corporate Tax deadline to avoid fines or missing out on the relief.
The FTA may release updated guidance as downloadable PDFs. To find the Small Business Relief UAE Corporate Tax PDF, follow these steps:
At BSD Prime Services, we are an FTA-Approved Tax Agency dedicated to helping small businesses, freelancers, and startups across the UAE manage their tax obligations with ease and accuracy. Our experienced tax consultants can guide you through the Small Business Relief UAE Corporate Tax process—from registration to election and final submission—ensuring full compliance and maximum benefit.
Let us handle the technical parts, so you can focus on growing your business.
BSD Prime Services is a highly acclaimed certified tax consultant in Dubai, UAE. Since VAT was introduced in January 2018, we've supported numerous UAE-based businesses with essential financial advice on corporate tax and vat services like filing, settlements, auditing, registration, bookkeeping and penalties for late tax submissions.
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