EQRAR · CLARITY STARTS HERE
Small Business Relief: Conditions and What You Still Need to Do
Small Business Relief lets resident persons with limited revenue be treated as having no taxable income for a tax period, with a simplified return and lighter record-keeping.
Eligibility (per FTA and MoF)
- You are a Resident Person for Corporate Tax (natural or juridical person).
- Revenue is AED 3,000,000 or less in the current tax period and all previous periods.
- You elect the relief each tax period, in your CT return.
Once revenue exceeds AED 3 million in any period, you can no longer elect, even if revenue later falls.
Who can’t elect
- Qualifying Free Zone Persons.
- Members of a multinational group with consolidated revenue above AED 3.15 billion.
Extended to 2029
On 7 August 2026 the Ministry of Finance announced Ministerial Decision No. 131 of 2026, extending the relief to tax periods ending on or before 31 December 2029.
What remains mandatory
The FTA confirms eligible persons must register for Corporate Tax, file a simplified return on time (within 9 months of period end), and keep records supporting revenue and eligibility. Tax losses from a relief period cannot be carried forward.
How EQRAR helps
We check your revenue across all periods, prepare records and financial statements, and draft the simplified return for your review before filing.
FAQ
What’s the revenue limit?
AED 3 million or less in the current and all previous periods.
Is it automatic?
No, you elect it in your CT return each period.
Am I exempt from filing?
No, a simplified return is still required on time.
Can free zone companies use it?
Qualifying Free Zone Persons cannot elect it.
How long does it apply?
To tax periods ending on or before 31 December 2029.
What about losses?
Losses from a relief period can’t be carried forward.
Want to know if you qualify? Call +971 55 738 5159. With EQRAR… Doubt Stays Far.