UAE Extends Small Business Tax Relief Until 2029

The UAE has extended the availability of Small Business Relief under the Corporate Tax regime until 31 December 2029, providing eligible small businesses and start-ups with additional time to benefit from the relief.

The AED 3 million revenue threshold remains unchanged, with the threshold now continuing to apply to eligible Tax Periods ending on or before 31 December 2029, subject to the applicable conditions and requirements under UAE Corporate Tax legislation.

The extension was introduced through Ministerial Decision No. 131 of 2026, which amends Ministerial Decision No. 73 of 2023 on Small Business Relief.

Supporting the UAE’s SME Economy

The extension reflects the UAE’s continued commitment to supporting entrepreneurship and strengthening the contribution of smaller businesses to the economy. SMEs play an important role in employment, innovation and economic diversification, making a stable and supportive tax environment increasingly important.

For eligible businesses, the extension provides a longer planning horizon for managing cash flow, investment, recruitment and expansion. It also gives emerging companies additional time to strengthen their operations and establish sustainable growth as they develop their businesses.

What Businesses Should Consider

While the extension is positive, Small Business Relief does not apply automatically. Taxable Persons must elect for the relief in the relevant Tax Period and satisfy the applicable conditions under UAE Corporate Tax legislation. 

Businesses should consider their revenue, activities and applicable Corporate Tax requirements when determining their eligibility. Certain Taxable Persons are excluded from Small Business Relief, including Qualifying Free Zone Persons and members of Multinational Enterprise Groups, subject to the specific provisions and definitions under UAE Corporate Tax legislation.

Corporate Tax registration, accurate accounting records and ongoing tax compliance remain important. Regularly reviewing these areas can help businesses understand their obligations, identify potential issues and reduce compliance risks.

For international entrepreneurs and investors, the extension further demonstrates the UAE’s approach to supporting business growth while maintaining a transparent and internationally aligned Corporate Tax environment.

How Trinity Group Can Help

Trinity Group provides UAE Corporate Tax and compliance advisory services, helping businesses assess their eligibility for Small Business Relief and understand the requirements that apply to them.

With the relief extended until 2029, businesses should review their tax position to confirm eligibility and understand their ongoing obligations. Trinity Group can support this assessment, helping businesses determine how the relief applies to their circumstances and take the appropriate steps to benefit from it while remaining compliant with UAE Corporate Tax requirements.