The short answer
Eligible UAE Resident Persons can elect Small Business Relief for a tax period when revenue is no more than AED 3 million in that period and every previous tax period. It is an election for each period, not an automatic exemption from corporate-tax administration.
The Ministry of Finance announced the extension on 7 August 2026: eligible tax periods can now end on or before 31 December 2029. Read the original 2023 conditions together with the later extension; the old 2026 end date is no longer the current limit.
Check eligibility before selecting relief
| Check | Decision |
|---|---|
| Resident status | The person must be resident for corporate-tax purposes; natural and juridical persons can qualify. |
| Current and previous revenue | AED 3 million or less in each relevant tax period. A previous breach prevents eligibility even if revenue later falls. |
| Free-zone status | A Qualifying Free Zone Person cannot elect. Do not decide from the licence location alone. |
| Multinational membership | Excluded if a member of an MNE group with consolidated revenue above AED 3.15 billion. |
| Election | Choose relief for the eligible period; it treats that period as having no taxable income. |
Do not test profit instead of revenue
Build a revenue schedule from the accounts, using applicable accounting standards accepted in the UAE. Cash left in the bank and profit after expenses are not substitutes for this schedule.
Do not split one business artificially to get under the threshold. The Ministry identifies artificial separation to obtain relief as a potential corporate-tax advantage under the general anti-abuse rules.
Relief does not remove filing or bookkeeping
The FTA includes eligible Small Business Relief taxpayers in its return-filing reminders. Confirm registration, submit the return and retain supporting records even when no tax payment is expected.
The normal filing and payment deadline is within nine months of the tax-period end. For a period ending 31 December 2025, that was 30 September 2026; the date has passed. Use your own period, not a general September headline.
Review losses and related-party transactions
Compare the election with the treatment of tax losses and disallowed net interest. The Ministry permits eligible amounts from non-election periods to be carried forward for use in later non-election periods, subject to the rules. Relief is not necessarily the best choice just because it is available.
The relief removes transfer-pricing documentation requirements, but related-party dealings must still meet the arm’s-length principle.
Prepare one review file
This is a practical preparation checklist, not an additional statutory form.
- List the entity, tax registration number and exact period dates at the front of the file.
- Add a period-by-period revenue schedule with links to the underlying accounts.
- Reconcile sales records, bank entries and outstanding customer balances; explain differences rather than forcing totals to agree.
- Record questions about residency, free-zone treatment, group membership or earlier elections for the reviewer.
- Keep any loss and interest schedules separate so the election can be assessed before submission.
- Save the reviewed calculation, final return acknowledgement and any follow-up actions together.
Separate tax relief from the preparation fee
Meraki’s corporate-tax preparation fee is a professional service charge, not tax payable to the FTA. A fee tier does not establish relief eligibility. Agree who prepares the books, reviews the treatment and completes the filing before work starts.
For an initial enquiry, share your period end and whether the books are complete. Do not send passwords, bank statements or identity documents through the enquiry form.
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