UAE Corporate Tax Small Business Relief Calculator 2026

UAE Corporate Tax Small Business Relief Calculator 2026

UAE Corporate Tax (CT) introduced Small Business Relief (SBR) for revenue under AED 3,000,000. This calculator helps UAE businesses determine whether they qualify, what relief they get, and how to apply. This guide covers UAE CT Small Business Relief for tax years 2023-2026.

What Is UAE CT Small Business Relief?

• Eligibility: UAE taxable persons (mainland and free zone companies if not QFZP-elected) with revenue of AED 3,000,000 or below for the tax period
• Relief: if eligible, the business is treated as if it has no taxable income for the period; effectively 0% CT regardless of profit level
• Election-based: SBR is not automatic; the company must ELECT to apply it in their UAE CT return; must tick the SBR election box when filing
• Period: available for tax periods ending before or on 31 December 2026 (current rules); may be extended

SBR Calculator — Revenue Threshold

• Annual revenue AED 3,000,000 or below: qualify for SBR; 0% CT if elected
• Annual revenue above AED 3,000,000: do NOT qualify; must calculate and pay 9% CT on profits above AED 375,000
• Revenue = total income from all sources for the tax period (not profit); turnover, not net income
• Multiple businesses: if you own multiple UAE entities, each is assessed separately (unless in a CT group); revenue of each entity considered individually

SBR Worked Examples

• Example 1: IFZA company; annual revenue AED 800,000; profit AED 200,000; elect SBR → CT payable: AED 0
• Example 2: IFZA company; annual revenue AED 2,500,000; profit AED 500,000; elect SBR → CT payable: AED 0
• Example 3: IFZA company; annual revenue AED 4,000,000; profit AED 800,000; SBR NOT available → taxable income AED 800,000 – AED 375,000 = AED 425,000 × 9% = CT AED 38,250
• Example 4: IFZA company elected as QFZP; qualifying income → 0% CT regardless of revenue (QFZP beats SBR; don’t need SBR if already QFZP)

SBR Anti-Fragmentation Rules

• Related party rule: if a business is artificially split between related parties to keep each entity below AED 3M, the FTA may treat them as one entity
• Genuine split: genuinely separate businesses with separate operations, staff, and customers can each claim SBR independently
• Risk: do not create multiple UAE companies purely to multiply the SBR threshold; FTA has anti-avoidance powers

How to Elect SBR When Filing UAE CT

1. Register on EmaraTax (FTA’s online portal)
2. Submit CT return for the tax period; ensure revenue field is accurately completed
3. If revenue AED 3M or below: check the SBR election box
4. SBR election is irrevocable for that period; ensure conditions are met before electing
5. Even with SBR elected, must still file CT return; SBR removes CT liability but not filing obligation