Small Business Relief (SBR) is a UAE Corporate Tax concession allowing eligible businesses with revenue of AED 3 million or less to be treated as having zero taxable income — paying no corporate tax for that period. Available for tax periods ending on or before 31 December 2026 (Ministerial Decision No. 73 of 2023).
To qualify: (1) be a UAE resident taxable person, (2) have revenue of AED 3 million or less for the relevant period and all prior periods since 1 June 2023, and (3) elect SBR in the corporate tax return. Businesses in multinational groups subject to Pillar Two are excluded.
No. Even with zero tax payable, businesses must still register with the FTA, maintain accounting records, and file an annual corporate tax return making the SBR election.
Once revenue exceeds AED 3 million in any period from June 2023 onwards, the business may permanently lose SBR eligibility. Careful revenue tracking is essential.
Finanshels assesses SBR eligibility, makes the correct election in the corporate tax return, and helps businesses approaching the threshold plan ahead. Our corporate tax services cover registration to filing.
