UAE Small Business Relief extended until 2029
Small businesses with revenue of up to AED 3 million can keep claiming Small Business Relief for corporate tax — now until the end of 2029.
What changed
Ministerial Decision No. 131 of 2026 extends Small Business Relief to tax periods ending on or before 31 December 2029. Under the original rules the relief would have ended with tax periods ending on 31 December 2026.
Who can claim it
- UAE resident persons — companies or individuals doing business — with revenue of AED 3 million or less in the current and previous tax periods.
- Some entities are excluded; check the conditions for your structure.
What it does not change
- The relief is not automatic: you elect it in your corporate tax return, for each tax period.
- Corporate tax registration, filing and record-keeping remain mandatory.
- Claiming the relief is not always the best option; review your overall tax position with a tax adviser.
What this means if you are planning to start a company in the UAE
The extension helps eligible small consultancies, trading companies and service businesses plan their early years. It is one more reason to set up the right structure from the start — and to keep proper books from day one.
This guide is general information, not legal, tax or immigration advice. Rules change; always check the current requirements for your situation.
Sources
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