The UAE Ministry of Finance has extended the country’s Small Business Relief for Corporate Tax purposes through tax periods ending on or before 31 December 2029.
The extension was issued under Ministerial Decision No. 131 and keeps the annual revenue threshold at AED 3M. Eligible taxable persons whose revenue does not exceed that amount can continue to access simplified Corporate Tax compliance requirements, subject to the conditions set out in UAE tax legislation.
The relief applies to tax periods beginning on or after 1 June 2023 and ending on or before 31 December 2029. Businesses with annual revenue above AED 3M do not qualify under the current threshold.
According to the announcement, the measure is intended to reduce the compliance burden on small businesses and startups while supporting voluntary compliance and business growth. Eligible companies should maintain accurate financial records, monitor annual revenue and reassess their eligibility for each relevant tax period.
The Ministry said the extension is part of its efforts to support small businesses and strengthen the UAE’s entrepreneurial ecosystem, giving qualifying companies greater certainty as they plan their tax obligations and future growth.
Source: EntArabi
