What changed
Small Business Relief originally covered tax periods ending on or before 31 December 2026. In 2026 the Ministry of Finance extended it to tax periods ending on or before 31 December 2029. Much of what is published online still shows the old end date.
Who can elect it
- UAE resident businesses, including individuals running a business
- Revenue of AED 3 million or less in the current tax period
- And AED 3 million or less in every previous tax period
- Not a Qualifying Free Zone Person
- Not part of a multinational group with consolidated revenue over AED 3.15 billion
What you still have to do
Relief is an election, not an exemption. You must be registered, keep proper books and file a return each year to claim it. Transfer pricing documentation is not required, but related-party transactions still need to be at arm’s length.
When it is not worth electing
If you made a tax loss, electing relief means the loss cannot be carried forward. A business that expects to grow past AED 3 million soon may be better off keeping its losses.