Small Business Relief: How UAE Corporate Tax Works for Smaller Companies

UAE Corporate Tax is charged at 9% on taxable income above AED 375,000. Resident businesses with revenue of AED 3 million or less in a tax period can elect for Small Business Relief, which treats them as having no taxable income for that period.

The relief is available for tax periods ending on or before 31 December 2026, and it is not open to Qualifying Free Zone Persons or members of large multinational groups. You still need to register and file a return to claim it.

Rules change — confirm your position with your accountant before you file.