What is Small Business Relief in UAE Corporate Tax, and until when does it apply: the law explained

Q: What is Small Business Relief in UAE Corporate Tax, and until when does it apply?

A UAE resident business can elect to be treated as having no taxable income for a tax period if its revenue is AED 3 million or less in that period and in every previous period (Article 21 of the Corporate Tax Law, Ministerial Decision No. 73 of 2023). Qualifying Free Zone Persons and members of large multinational groups (as defined in Cabinet Decision No. 44 of 2020) cannot elect it. It now runs to 2029: Ministerial Decision No. 131 of 2026 (29 July 2026) extended it to tax periods that end on or before 31 December 2029. The original date was 31 December 2026. What it costs: tax losses and net interest expenditure of a relief period cannot be carried forward, and exempt income, reliefs and deductions do not apply in that period. The relief is elected in the tax return, so the business still registers and files.

What is Small Business Relief in UAE Corporate Tax, and until when does it apply?

Short answer

A UAE resident business can elect to be treated as having no taxable income for a tax period if its revenue is AED 3 million or less in that period and in every previous period (Article 21 of the Corporate Tax Law, Ministerial Decision No. 73 of 2023). Qualifying Free Zone Persons and members of large multinational groups (as defined in Cabinet Decision No. 44 of 2020) cannot elect it.

It now runs to 2029: Ministerial Decision No. 131 of 2026 (29 July 2026) extended it to tax periods that end on or before 31 December 2029. The original date was 31 December 2026.

What it costs: tax losses and net interest expenditure of a relief period cannot be carried forward, and exempt income, reliefs and deductions do not apply in that period. The relief is elected in the tax return, so the business still registers and files.

Checked against the official texts below. The law is the authority; this is not tax advice.

What the law says

Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses, Article 21

Article 21 – Small Business Relief

A Taxable Person that is a Resident Person may elect to be treated as not having derived any Taxable Income for a Tax Period where:
a. the Revenue of the Taxable Person for the relevant Tax Period and previous Tax Periods does not exceed a threshold to be set by the Minister; and
b. the Taxable Person meets all other conditions prescribed by the Minister.
Where Clause 1 of this Article applies to a Taxable Person, the following provisions of this Decree-Law shall not apply:
a. Exempt Income as specified in Chapter Seven of this Decree-Law.
b. Reliefs as specified in Chapter Eight of this Decree-Law.
c. Deductions as specified in Chapter Nine of this Decree-Law.
d. Tax Loss relief as specified in Chapter Eleven of this Decree-Law.
e. Article 55 of this Decree-Law.
The Authority may take the necessary measures to verify the compliance with the conditions of Clause 1 of this Article, and may request any relevant information or records from the Taxable Person within the timeline prescribed by the Authority.

What is Small Business Relief in UAE Corporate Tax, and until when does it apply?

Short answer

What the law says

Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses, Article 21

Article 21 – Small Business Relief

Decisions and FTA guidance on this

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