Corporate tax · Deadline
Small Business Relief ends for periods after 31 December 2026
What the relief actually does
UAE Small Business Relief lets an eligible resident taxable person elect to be treated as having no taxable income for a tax period when revenue stays at or below AED 3,000,000 in that period and in every previous relevant period covered by the relief. It is temporary: FTA guidance ties it to tax periods beginning on or after 1 June 2023 and ending on or before 31 December 2026.
That sunset is the point competitors under-write. A founding team still modelling “we are under AED 3m so we stay at 0% forever” is planning against a bridge that ends.
Who usually qualifies — and who does not
- Resident taxable person — natural or juridical persons within the Corporate Tax rules, not every informal side project.
- Revenue ≤ AED 3,000,000 in the current period and all previous relevant periods ending on or before 31 December 2026.
- Not a Qualifying Free Zone Person — if you are planning QFZP status for 0% on Qualifying Income, Small Business Relief is the wrong tool; see QFZP reality.
- Not a member of a large MNE group — FTA guidance excludes members of multinational enterprise groups above the consolidated-revenue threshold used in the Small Business Relief rules (commonly cited at AED 3.15 billion — confirm in the current guide).
The free zone interaction founders miss
Free zone incorporation and Small Business Relief are not the same lever. Electing Small Business Relief is about revenue and residency under the Corporate Tax Law. QFZP status is about Qualifying Income, substance, audited financials, and de minimis tests under the Free Zone Persons rules.
A founder who elects Small Business Relief for 2025–2026 still needs a plan for periods ending after 31 December 2026: either standard rates (including the AED 375,000 taxable-income band where it applies), or a deliberate QFZP path if the activity and customer mix support Qualifying Income. Mixing the two without advice is how “0% forever” stories break.
Zone choice and licence packaging still matter for visas and operating model — for fee honesty, use the hidden-costs guide and the Free Zone Matcher, not this page.
What to do before the window closes
- Confirm whether your tax period end date falls on or before 31 December 2026.
- Reconcile revenue for every relevant period against the AED 3,000,000 test.
- Decide whether QFZP is even available for your activity and customer geography — separately from SBR.
- Elect on the Corporate Tax return if eligible; do not assume the portal defaults you in.
- Model 2027 under standard Corporate Tax (or QFZP, if that is the real plan) with a licensed advisor.
FAQ
When does UAE Small Business Relief end?
Under the Federal Tax Authority Small Business Relief Guide, the relief is available for tax periods that end on or before 31 December 2026. Confirm the cut-off and any extension against the current FTA / MoF text before you plan a filing.
Is the AED 3 million test about profit or revenue?
It is a revenue test. Eligible resident persons must stay at or below AED 3,000,000 of revenue in the current tax period and in all previous relevant periods covered by the relief — profitability alone does not decide eligibility.
Can a Qualifying Free Zone Person elect Small Business Relief?
No. FTA guidance lists Qualifying Free Zone Person status among the conditions that take a business outside Small Business Relief. QFZP 0% on Qualifying Income is a separate regime with its own tests — see our QFZP guide.
Is the relief automatic if revenue is under AED 3 million?
No. Eligible persons must elect the relief on the Corporate Tax return (via EmaraTax). Missing the election is not the same as qualifying on paper.