Small business relief: how to pay no Corporate Tax legally
If your revenue is AED 3 million or less, you may be able to treat your taxable income as zero. Here's how small business relief works.
- Resident businesses with revenue of AED 3 million or less can elect for relief.
- It applies to tax periods ending on or before 31 December 2026.
- You still need to register, keep records and file a return.
What the relief does
Small business relief lets an eligible business be treated as having no taxable income for a tax period. In practice, that means no Corporate Tax to pay for that period.
Who qualifies
- You are a UAE resident person for Corporate Tax purposes
- Your revenue is AED 3 million or less in the current period and in each previous tax period
- The tax period ends on or before 31 December 2026
Qualifying free zone persons and members of large multinational groups cannot claim it. Artificially splitting a business to stay under the limit is treated as abuse and can lead to penalties.
What you still have to do
Relief is not automatic. You must be registered, keep proper financial records and elect for the relief in your Corporate Tax return each period. If you elect, you can't carry forward tax losses from that period.
Is it right for you?
For most small businesses with profits, relief is a clear win. If you have losses you'd like to use in later years, it can be better not to elect. We check both options when we prepare your return.
Our corporate tax services cover everything in this guide, from registration to filing.
This guide is general information about UAE tax rules as of 29 October 2026, not tax advice for your business. Rules and FTA practice change; speak to an adviser before acting.