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

Businesses earning up to Dh3m can claim simplified corporate tax treatment through 2029

Last updated:
Nivetha Dayanand, Assistant Business Editor
UAE extends corporate tax relief for small businesses until end of 2029
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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.

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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.

Nivetha Dayanand
Nivetha DayanandAssistant Business Editor
Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.
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