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Small Business Relief Under UAE Corporate Tax
An Arab businessman diligently analyzing data on his computer, making important decisions for the company. Muslim guy wearing traditional attire is checking charts and data on his desktop pc.

The UAE has introduced Small Business Relief (SBR) to support start-ups and small enterprises as part of its new corporate tax regime, effective for tax periods starting on or after 1 June 2023. This initiative aims to ease compliance and reduce tax burdens for eligible businesses.

Who Can Claim Small Business Relief?

You can elect for SBR if your business meets all the following conditions:


  • Revenue does not exceed AED 3 million for the current and all previous tax periods starting on or after 1 June 2023.
  • You are a resident person in the UAE.
  • You are not:

    • A free zone person benefiting from the 0% corporate tax regime.
    • A member or constituent entity of a multinational enterprise group with global revenue exceeding EUR 750 million.

What Are the Benefits?

  • 0% Corporate Tax : Your business will be treated as having no taxable income, even if it earns a profit.
  • Simplified Compliance : You do not need to calculate taxable income or apply complex adjustments.
  • Valid Until 31 December 2026 : Relief is available for tax periods starting from 1 June 2023 up to 31 December 2026.

    • Key Points to Remember

  • You must actively elect to apply for Small Business Relief in your tax return—it is not automatic.
  • You must still register for corporate tax, file annual returns, and maintain proper records.
  • Splitting business revenue artificially to stay under the AED 3 million threshold is prohibited and subject to penalties.

    • Need Assistance?

    If you’re unsure whether your business qualifies or need help with the election process, our team is here to guide you every step of the way.