The UAE has extended its small-business tax relief scheme until the end of 2029, giving eligible companies with annual revenues of up to AED 3M three additional years of support, according to Bloomberg.
The relief effectively provides a 0% corporate tax rate for qualifying businesses. The scheme, introduced in 2023, was previously available for tax periods ending before December 31, 2026. The extension moves the deadline to December 31, 2029.
The measure is intended to reduce tax and administrative costs for smaller companies during their early stages, allowing them to direct more resources toward expansion and investment.
The extension also supports the UAE’s broader effort to build a competitive corporate tax system while maintaining incentives for startups, entrepreneurs and other small businesses. According to the announcement, the policy is designed to provide greater stability for businesses as they grow and pursue wider market opportunities.
Source: Al Khaleej
