UAE extends Small Business Relief until 2029

The UAE Ministry of Finance has extended Small Business Relief under the corporate tax regime by three years. Under Ministerial Decision No. 131 of 2026, announced on 7 August 2026, eligible businesses can continue to claim the relief for tax periods ending on or before 31 December 2029. The relief was originally due to end with tax periods ending on 31 December 2026.

What the relief does

Small Business Relief lets a UAE resident business with revenue of up to AED 3 million in a tax period be treated as having no taxable income for that period. In practice, a qualifying small business pays no corporate tax and files a simplified return.

Who can use it

• Resident persons whose revenue does not exceed AED 3 million in the relevant tax period and in each earlier tax period.
• The relief must be elected in the corporate tax return.
• Qualifying Free Zone Persons and members of multinational enterprise groups cannot use it.

Why it matters for founders moving to the UAE

For a new consulting, technology or e-commerce business, the extension gives three more years of certainty. A founder who sets up a UAE company in 2026 or 2027 can plan on a zero corporate tax bill while revenue stays within the limit, provided the company keeps proper records and files on time.

The Ministry said the decision reaffirms the UAE's commitment to a competitive tax system that supports sustainable economic development.

What to do

• Keep proper accounting records. The relief does not remove the duty to register, keep books and file a return.
• Monitor revenue each year. Crossing AED 3 million in any period ends eligibility from then on.
• Check whether the 0% free zone regime or Small Business Relief suits your company better. The two cannot be combined.

Sources

• The National: UAE extends corporate tax relief for small businesses until 2029
• Aletihad: Ministry of Finance extends Small Business Relief
• Federal Tax Authority: Corporate tax

This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.