UAE Corporate Tax Small Business Relief — Complete Guide 2026
The UAE Small Business Relief (SBR) allows companies with revenue under AED 3 million to elect for 0% corporate tax. Here is the complete 2026 guide.
What Is UAE Small Business Relief?
UAE Small Business Relief (SBR) under Ministerial Decision No. 73 of 2023 allows eligible businesses to be treated as having zero taxable income for a tax period. Effectively, 0% UAE CT applies if you elect for SBR and qualify.
Who Qualifies for UAE Small Business Relief?
- Revenue (turnover) does not exceed AED 3 million in the relevant tax period
- Revenue has not exceeded AED 3 million in any previous tax period (since CT inception date)
- The business is not part of a group where total group revenue exceeds AED 3 million
- The business is not a Qualifying Free Zone Person (QFZP) that is subject to 0% rate on qualifying income anyway
- The business is not a company that is a member of a Multinational Enterprise (MNE) group
How to Elect for Small Business Relief
- Register with the Federal Tax Authority (FTA) for UAE Corporate Tax
- In your UAE CT return, elect for Small Business Relief for the relevant tax period
- Maintain records proving your revenue was under AED 3 million
What Revenue Count Towards the AED 3 Million Threshold?
Revenue for SBR purposes includes all income from business activities, including:
- Sales revenue from goods or services
- Interest income from business activities
- Rental income from commercial property
- But NOT: personal investment returns (dividends, capital gains on shares held as investments)
Small Business Relief and Free Zone Companies
Free zone companies that are Qualifying Free Zone Persons (QFZP) already benefit from 0% CT on qualifying income. They would typically NOT elect SBR as they already benefit from 0% on qualifying income. Non-qualifying free zone companies or those with non-qualifying income may elect SBR if under AED 3 million.