The UAE has extended Small Business Relief under the Corporate Tax regime until 31 December 2029, giving eligible businesses an additional three years to benefit from the relief.
Under Ministerial Decision No. 131 of 2026, certain provisions of Ministerial Decision No. 73 of 2023 have been amended. Previously, Small Business Relief was available for Tax Periods ending on or before 31 December 2026. The relief can now continue to apply to eligible Tax Periods ending on or before 31 December 2029.
What Has Changed?
The amendment is straightforward: the relief period has been extended by three years.
Eligible UAE Resident Taxable Persons with Revenue of AED 3 million or less in the current and all previous relevant Tax Periods can continue to consider Small Business Relief, subject to the existing eligibility requirements.
The extension provides businesses with greater certainty when planning their Corporate Tax position over the coming years.
What Has Not Changed?
Equally important is what the new Decision does not change.
The AED 3 million revenue threshold remains the same. No new eligibility conditions have been introduced, and the manner in which Small Business Relief is claimed remains unchanged. The amendment only extends the period during which eligible businesses can benefit from the relief.
Qualifying Free Zone Persons and members of Multinational Enterprise Groups exceeding the specified consolidated revenue threshold remain outside the scope of Small Business Relief.
Is Small Business Relief Still the Right Choice?
The extension gives eligible businesses more time, but electing Small Business Relief remains a decision that should be considered based on the individual circumstances of the business.
Businesses should continue to assess their eligibility, Corporate Tax position and the implications of making the election rather than treating the extension as an automatic selection.
How MCA Gulf Can Help
MCA Gulf’s UAE Corporate Tax team can support businesses with eligibility assessments, election analysis, Corporate Tax Return preparation and ongoing compliance advisory.
For a working session, contact us.
Download the Guide
Download our guide for a practical overview of Ministerial Decision No. 131 of 2026 and the extension of UAE Small Business Relief until 31 December 2029.
