Corporate Tax Small Business Relief UAE
Small Business Relief (SBR) reduces UAE Corporate Tax to 0% for companies under AED 3M revenue (financial years 2023-2026). We confirm eligibility, file SBR election, and ensure compliance for 4 years of relief.
Small Business Relief — 0% Tax to AED 3M
Cabinet Decision No. 73 of 2023 introduced Small Business Relief (SBR) — a transitional measure that elects 0% Corporate Tax for resident UAE businesses with revenue not exceeding AED 3,000,000 in any tax period from 2023 to 2026. This effectively means SMEs pay no CT during the first 4 years of the regime.
SBR is not automatic — it must be ELECTED in the tax return for each eligible year. Once revenue crosses AED 3M (even once), the company permanently loses SBR for all future periods. SBR excludes Free Zone Qualifying Persons (they have their own 0%), entities part of MNE Groups (annual revenue > EUR 750M), and Qualifying Investment Funds.
Why Choose This Service
What Our Clients Say
SBR Eligibility Checklist
- Resident UAE legal person (LLC, Free Zone Company, branch)
- Revenue ≤ AED 3,000,000 in the relevant tax period
- AND revenue ≤ AED 3M in ALL preceding tax periods
- NOT a Qualifying Free Zone Person
- NOT part of an MNE Group with revenue > EUR 750M
- NOT a Qualifying Investment Fund
- Election made in tax return (not automatic)
How We Deliver
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01
Eligibility assessment
We confirm your revenue history, structure type, and group affiliations qualify for SBR.
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02
Revenue tracking setup
Monthly revenue monitoring so you know exactly when you approach the AED 3M ceiling.
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03
Tax return preparation
Annual return with SBR election. Simpler than full CT return — fewer schedules required.
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04
FTA filing
Return filed via FTA portal with SBR election ticked. Confirmation archived.
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05
Annual re-eligibility check
Each year we re-confirm SBR eligibility before re-election. If approaching AED 3M we plan transition to standard CT.
Frequently Asked Questions
Maximum saving: 9% of (revenue - AED 375K). At AED 3M revenue with 30% margin (AED 900K profit), saving = AED 47,250/year. At higher margins savings increase proportionally — up to ~AED 200,000+ per year for high-margin businesses near the cap.
No — you must elect SBR explicitly in each year's tax return. If you forget, you pay standard 9% even if eligible. We track this annually on retainer clients.
SBR ends after the tax period starting in 2026. From 2027 onward, all eligible UAE companies pay 9% above AED 375K (or 0% if QFZP qualified). Companies should plan for this transition — budget for CT cash flow from 2027.
Risky. FTA aggregation rules require related companies to combine revenue for SBR purposes if they share common ownership/control. Artificial splitting can be disregarded. We advise against this — better to plan transition to full CT.
Free Zone companies that DO qualify as QFZP get 0% on Qualifying Income — they don't need SBR. Free Zone companies that DON'T qualify as QFZP and have revenue under AED 3M can elect SBR. The two are mutually exclusive.
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