The UAE Ministry of Finance has pushed back the expiry of Small Business Relief for Corporate Tax purposes to tax periods ending on or before 31 December 2029. The change comes through Ministerial Decision No. 131, issued on 7 August 2026. Businesses with annual revenue up to AED 3 million can keep claiming the relief, and the threshold itself hasn't moved. The old cut-off was 31 December 2026, so this buys eligible businesses three extra years.

Key Takeaways

• Small Business Relief now runs through tax periods ending on or before 31 December 2029.

• The AED 3 million revenue threshold from Ministerial Decision No. 73 of 2023 stays the same.

• Ministerial Decision No. 131 is the legal instrument behind the extension.

• Qualifying Free Zone Persons and large Multinational Enterprise Group members still can't claim it.

• You have to elect for the relief in your return each year; it's not applied automatically.

• Corporate Tax registration and filing obligations continue regardless.

What the Ministry of Finance Actually Announced

On 7 August 2026, the Ministry confirmed Ministerial Decision No. (131), which extends the window for claiming Small Business Relief. In practical terms, small businesses and start-ups get three more years of the simplified compliance route they've had since 2023 - the relief now covers tax periods ending on or before 31 December 2029 rather than stopping at the end of 2026.

The Ministry framed this as part of a broader push to keep the UAE attractive for entrepreneurs, pointing out that SMEs make up over 94 percent of businesses in the country and contribute more than 60 percent of non-oil GDP. That context matters, because it signals this isn't a one-off tweak but a continuation of policy direction the Ministry has held since Corporate Tax was introduced.

One thing worth being precise about: the AED 3 million threshold hasn't changed at all. What's changed is how long businesses can rely on it. It applies continuously from tax periods starting on or after 1 June 2023 through to periods ending on or before 31 December 2029.

Who Actually Qualifies

Small Business Relief lets an eligible resident taxable person treat themselves as having no taxable income for the period, which removes the need to run the full Corporate Tax calculation. The conditions are fairly narrow:

If revenue goes over AED 3 million in any given period, the relief simply isn't available for that period, and the business files under the standard rules instead - 0 percent up to AED 375,000 of taxable income, 9 percent above it.

Why This Actually Matters

For most eligible businesses, the tax rate itself isn't really the story here, since a lot of small businesses would already sit in the 0 percent bracket anyway. What the relief actually saves you is the compliance work - the adjustments, the disclosures, the extra line items that come with a full Corporate Tax computation. That's a real difference for a business still building out its finance function.

Stretching the deadline to 2029 gives founders a longer runway before that compliance burden kicks in. Anyone who was quietly budgeting for things to get more complicated after 2026 now has breathing room.

It's worth repeating, though, that this doesn't remove the underlying obligations. You still need to be registered for Corporate Tax, still need to file a return every period, and still need to elect for the relief each time - it doesn't roll over on its own. And revenue has to be watched closely against that AED 3 million line, because crossing it even once knocks out eligibility for that period.

What to Do About It

1. Check where your revenue actually sits. Look at the current and prior periods, and be honest about whether growth could put you over AED 3 million before 2029.

2. Make sure the election is actually filed. This isn't automatic - it has to be claimed in the return every qualifying period.

3. Keep your records in order. The FTA can still review your revenue figures, so the bookkeeping needs to hold up.

4. Double-check free zone or group exclusions. Don't assume you qualify without confirming your structure isn't excluded.

5. Plan for the exit, not just the extension. If you're approaching the threshold, start preparing for the standard Corporate Tax process before you cross it, not after.

Get Expert Support for Your Corporate Tax Compliance

Extensions like this one are exactly why it helps to have someone tracking Ministerial Decisions on your behalf. ADS Auditors' Corporate Tax Registration Services can confirm whether you qualify for Small Business Relief, handle the election correctly, and keep your filings on track going forward. Businesses in Sharjah can also lean on our Corporate Tax Services in Sharjah.

Not sure where your filing deadlines or revenue position stand under the current rules? Our guide on when corporate taxes are due and our Corporate Tax Registration FAQs cover the common questions.

Contact ADS Auditors to confirm your eligibility for Small Business Relief and keep your Corporate Tax filings accurate through 2029 and beyond.