UAE extended tax relief for small businesses through 2029 without changing the AED 3 million eligibility threshold.
The UAE’s Ministry of Finance has announced the issuance of Ministerial Decision No. (131), extending the period during which eligible Taxable Persons can claim Small Business Relief to tax periods ending on or before 31 December 2029.
The amendment updates certain provisions of the Ministerial Decision on the Taxation of Corporations and Businesses and continues the application of the existing AED 3 million revenue threshold for eligible businesses.
Relief period extended
Under Ministerial Decision No. (131), the threshold prescribed under Ministerial Decision No. (73) of 2023 will continue to apply to tax periods commencing on or after 1 June 2023 and to subsequent tax periods ending on or before 31 December 2029.
The change extends the availability of Small Business Relief without altering the qualifying revenue threshold.
Eligibility remains unchanged
Small Business Relief is available to Taxable Persons whose annual revenue does not exceed AED 3 million.
Eligible businesses may benefit from simplified Corporate Tax compliance requirements, provided they meet the conditions and requirements set out in the relevant legislation.
The relief is intended to reduce compliance obligations for qualifying small businesses operating under the UAE’s Corporate Tax framework.
Support for small businesses
The Ministry of Finance said the amendment forms part of efforts to support small businesses and start-ups and to provide an environment that enables entrepreneurs to grow and expand their businesses.
The ministry also said the measure reflects the UAE’s approach to maintaining a competitive tax system that supports sustainable economic development, promotes compliance and remains aligned with international best practices.
