UAE Small Business Relief (SBR) Corporate Tax Reference 2026
UAE Small Business Relief (SBR) provides a 0% CT effective rate for eligible small businesses. Here is the complete 2026 reference guide.
In this guide:
What Is Small Business Relief?
- Eligibility: UAE resident businesses with revenue not exceeding AED 3,000,000 (AED 3 million) in the relevant tax period
- Benefit: Taxable income is treated as zero; effective 0% CT for the whole year
- Election: Must elect SBR in the CT return; it is not automatic
Who Can Elect SBR
- UAE resident persons: Includes individuals conducting business; mainland and free zone companies (if UAE resident)
- Non-residents: NOT eligible for SBR; SBR is only for UAE resident taxable persons
- Revenue test: AED 3 million or below in the tax period (and prior periods from June 2023)
Who Cannot Elect SBR
- QFZP: A Qualifying Free Zone Person that has elected QFZP status CANNOT also elect SBR for the same period
- Multinational groups: Members of multinational enterprise groups (Pillar Two in-scope) cannot elect SBR
- Revenue above AED 3M: If revenue exceeds AED 3 million; standard CT rates apply
SBR vs. QFZP Election — Which to Choose?
- Revenue below AED 3M: SBR may be simpler; no substance or qualifying income analysis needed
- Revenue above AED 3M: QFZP election is needed for 0% on qualifying income
- Consult: Tax adviser should review which election is optimal for your specific situation