UAE extends corporate tax relief for small businesses until end of 2029

Dubai: Small businesses in the UAE with annual revenue of up to Dh3 million will be able to continue claiming Small Business Relief for corporate tax purposes until the end of 2029.

The Ministry of Finance said on Friday that Ministerial Decision No. 131 has extended the period during which eligible businesses can claim the relief to tax periods ending on or before December 31, 2029.

The relief had been introduced to reduce the corporate tax compliance burden on smaller businesses and start-ups that meet the required conditions.

Dh3 million threshold remains

The existing Dh3 million annual revenue threshold set under Ministerial Decision No. 73 of 2023 will remain unchanged.

It applies to tax periods beginning on or after June 1, 2023 and, following the latest amendment, will continue to apply to subsequent tax periods ending on or before December 31, 2029.

Eligible taxable persons whose annual revenue does not exceed Dh3 million can claim Small Business Relief, subject to the conditions and requirements set out in the corporate tax legislation.

The relief allows qualifying businesses to benefit from simplified corporate tax compliance requirements.

More time for small businesses

The extension gives eligible small businesses and start-ups additional tax periods in which they can make use of the relief while remaining within the Dh3 million revenue threshold.

The Ministry said the decision forms part of its efforts to support smaller companies and entrepreneurs, strengthen the business environment and encourage businesses to grow and expand.