Small Business Relief was introduced to reduce Corporate Tax complexity for smaller UAE resident businesses. It does not mean registration and record-keeping can be ignored.
Core Eligibility Points
- The taxable person must be a resident person
- Revenue must not exceed AED 3 million in the relevant tax period and previous tax periods
- The relief is linked to tax periods starting on or after 1 June 2023 and ending on or before 31 December 2026
- Qualifying Free Zone Persons and certain multinational group members are excluded
Records to Keep
- Revenue reports by tax period
- Financial statements or management accounts
- Invoices and contracts supporting revenue
- Evidence of residence and entity status
- Board or owner approval of the relief position where appropriate
Crossing AED 3 million in any tax period can affect availability of relief. Monitor revenue before year end, not only when filing.
Common Misunderstanding
Small Business Relief is not the same as being outside Corporate Tax. A business may still need to register, maintain records, assess eligibility, and file correctly.