UAE CT Small Business Relief allows businesses with revenue up to AED 3 million to pay zero corporate tax. Here is the complete reference guide.
In this guide:
Small Business Relief (SBR) Key Facts
- Revenue threshold: AED 3,000,000 or below for the tax period
- CT rate: 0% (effectively exempt from CT) if SBR is elected
- Available to: Resident juridical persons (companies); also natural persons with business income
- Periods: Tax periods ending before 31 December 2026
- Election: Must be actively elected on the EmaraTax CT return; not automatic
Who Cannot Use Small Business Relief
- Qualifying Free Zone Persons (QFZPs): Must NOT elect SBR; it would remove QFZP status
- Members of Multinational Enterprise (MNE) Groups: Revenue threshold is group-level; SBR not available
- Companies claiming other UAE CT exemptions: Check interaction carefully
Revenue Calculation for SBR
- Revenue: Total income from all sources before deductions
- AED 3 million: If exceeded in a period, SBR cannot be elected for that period
- Related parties: Revenue from transactions with related parties may be subject to arm-length adjustment before checking threshold
SBR and Free Zone Companies
- Non-QFZP free zone company: Can elect SBR if revenue under AED 3 million
- QFZP: Should NOT elect SBR; they already have a 0% rate on qualifying income via QFZP status
- Decision: If your free zone company is not a QFZP (due to UAE-source income, non-qualifying activity), SBR may still be available