UAE Corporate Tax Update: Small Business Relief Extended to 2029
The UAE Ministry of Finance has issued Ministerial Decision No. 131 of 2026, extending the AED 3 million Small Business Relief (SBR) revenue threshold to Tax Periods ending on or before 31 December 2029.
What does this mean?
Eligible UAE businesses can continue to consider electing for SBR through 2029, subject to meeting all applicable conditions and exclusions under the UAE Corporate Tax legislation.
The extension provides greater certainty and continued support for eligible small businesses and start-ups.
Important Considerations
The AED 3 million revenue threshold does not automatically qualify a business for SBR. Businesses should also consider:
- Applicable eligibility conditions and exclusions.
- The impact of the SBR election on their current and future tax position.
- Tax losses, group structures and related-party arrangements.
- Expected business growth and future revenue levels.
- Appropriate accounting records and Corporate Tax compliance requirements.
Our Recommendation
Businesses should assess their SBR eligibility and the wider tax implications before making the election. This is particularly important for businesses expecting significant growth or changes in their structure or activities.
XB4 can assist with:
- SBR eligibility assessments
- Corporate Tax return preparation
- Tax computations and planning
- SBR election considerations
- Corporate Tax advisory and compliance
If you have not yet assessed your eligibility for Small Business Relief, we recommend reviewing your position before filing your Corporate Tax return. Contact XB4 today to assess your eligibility, understand the tax implications, and determine whether electing for Small Business Relief is the right approach for your business.
