The UAE Ministry of Finance has issued Ministerial Decision No. 131, extending the period during which businesses can claim Small Business Relief (SBR) under the Corporate Tax regime. The relief now applies to tax periods ending on or before 31 December 2029 — three years beyond the previous 31 December 2026 cut-off.
The AED 3 million revenue threshold set under Ministerial Decision No. 73 of 2023 remains unchanged. An eligible UAE resident business whose revenue does not exceed AED 3 million in the relevant period, and in every previous period since 1 June 2023, can elect to be treated as having no taxable income — effectively a 0% Corporate Tax outcome for that period.
The conditions are unchanged. SBR is not automatic: you must elect it in your Corporate Tax return on EmaraTax for each qualifying period, and you still have to register and file. Qualifying Free Zone Persons claiming the 0% free-zone rate, and members of large multinational groups (Pillar Two), cannot elect the relief.
For small businesses and start-ups, the extension means three more years of simplified compliance and potential savings — provided the election is made correctly and on time. Miss the election and standard Corporate Tax applies.