UAE Corporate Tax — Small Business Relief 2026 Guide
UAE CT Small Business Relief allows qualifying small businesses to be treated as if they have no taxable income. Here is the complete 2026 guide.
In this guide:
What Is UAE CT Small Business Relief?
- Definition: A CT relief that treats a qualifying small business as having zero taxable income for the tax period
- Effect: Even if the business has profits, it pays no UAE CT under SBR
- Threshold: Available to UAE taxable persons with revenue of AED 3 million or less in the tax period and all prior periods
How to Qualify for Small Business Relief
- Revenue test: Revenue must be AED 3 million or less in the current tax period
- Historical test: Revenue must have been AED 3 million or less in ALL prior periods
- Election: Must elect SBR on the UAE CT return; it is not automatic
- Not a member of MNE group: Cannot be a UAE-resident member of a Multinational Enterprise group that exceeds EUR 750M revenue
SBR and Free Zone Companies
- Free zone companies can use SBR: A free zone company that elects SBR is treated as standard taxpayer (not as QFZP)
- Trade-off: Electing SBR means giving up QFZP 0% rate; generally only makes sense if company would otherwise pay 9% on some income
SBR vs QFZP — Which to Choose?
- Mainly free zone income: Choose QFZP (0% on qualifying income); do not elect SBR
- Significant mainland income with revenue below AED 3M: SBR may be simpler; no QFZP conditions to meet