UAE Small Business Relief now runs to 2029: who can elect it, what you still file, and the records that prove it

Yes. Small Business Relief now covers tax periods that end on or before 31 December 2029 (Ministerial Decision No. 131 of 2026), for a resident business whose revenue stays at or below AED 3 million. It is an election, not an exemption: you still register, file a simplified return and keep records. E-invoicing is a separate 2027 duty.

What changed. On 7 August 2026 the Ministry of Finance announced an extension of the relief, under Ministerial Decision No. 131 of 2026, to tax periods ending on or before 31 December 2029. On 3 August the Federal Tax Authority (FTA) repeated that eligible businesses must still file. We read these sources on 9 November 2026. The FTA's relief page sets out the conditions but gives no end date, so read it together with Decision 131; older explainers may give an earlier date.

Who can elect the relief

The FTA page sets the conditions and the exclusions. Read the rows in order; the first row that says "Not eligible" or "Cannot elect" ends the test.

The election is made for each tax period. If you qualify, you are treated as having no taxable income for that period. Other exemptions, reliefs and deductions are not available, transfer pricing documentation is not required, and the arm's length principle still applies.

The previous-periods rule, with numbers

The FTA's own example: a business with AED 4.3 million revenue in 2025 and AED 1.9 million in 2026 cannot elect for 2026, because an earlier period was above the threshold. Our illustration of the same rule, with a company that has a calendar financial year:

So the decision to grow past AED 3 million is a one-way door on the FTA's wording. If you are at AED 2.8 million and a large order would take you over, you need to know before you sign. The decision also says the threshold applies to periods that commence on or after 1 June 2023, so check with the FTA how it treats any earlier period.

What you still file, and when

Eligibility does not remove the duty to file, the FTA says. You:

1. Register for corporate tax.
2. Elect the relief in the return, for that period only.
3. File a simplified return, which asks for less information.
4. Submit within nine months of the end of the tax period. The FTA gives one example: a year ending 31 December 2025 has a deadline of 30 September 2026. By the same arithmetic, a year ending 31 December 2026 is due by 30 September 2027.
5. Keep records for the whole period.

The FTA news item states no penalty amount, so we give none. Read the penalty rules in the legislation or ask your adviser.

The records that prove you stayed under AED 3 million

The FTA says you must be able to show your revenue stayed under the threshold in each relevant period. It lists four core records: transactions, assets with their acquisitions and disposals, liabilities, and shares or ownership interests held at the end of the period. Our suggested checklist for the proof file, one per year:

Relief is not an e-invoicing exemption

Decision 244 itself contains no exception for a business that elects Small Business Relief. If you are subject to the system and your revenue is under AED 50 million, you appoint an accredited service provider by 31 March 2027 and implement by 1 July 2027. A business that sells only to consumers is outside the system for now; its sales to businesses, if it has any, are not. The two duties run on different calendars:

Read the under AED 50 million plan for the month-by-month schedule and the timeline for every date.

How Tarleaks helps

Tarleaks Accounting has a UAE corporate tax computation that starts from the posted profit and loss, a trial balance and profit and loss by period, and attachments on journal entries for your proof file. Check the earlier years yourself: the relief test looks back, and the computation does not replace that check. Tarleaks does not file the return for you.

What to do next

• Write down your revenue for every year since 2023 and check each against AED 3 million.
• Decide before year end whether a large order will take you past the threshold.
• Build the proof file once a year from the list above.
• Put 31 March 2027 for the e-invoicing provider in the same calendar.
• Book a demo to see the corporate tax computation on sample data.

Questions people ask

How long does Small Business Relief last in the UAE?

Ministerial Decision No. 131 of 2026 extends the AED 3 million threshold to tax periods ending on or before 31 December 2029. An older page that gives an earlier end date predates the decision.

Does a business under AED 3 million still have to file a corporate tax return?

Yes. The Federal Tax Authority says eligibility does not remove the duty to file. You elect the relief in the return and file a simplified return within nine months of the end of the tax period.

Can I use the relief again if my revenue goes over AED 3 million once?

Not on the Federal Tax Authority's wording. Revenue must be AED 3 million or less in the current period and in all previous periods, and its own example shows a business ineligible for 2026 because 2025 revenue was above the threshold.

Do I still need e-invoicing if I elect Small Business Relief?

Decision 244 on e-invoicing has no exception for it. If you are subject to the system and your revenue is under AED 50 million, you appoint a provider by 31 March 2027 and implement by 1 July 2027, unless you sell only to consumers.

Which records prove that I stayed under AED 3 million?

The Authority lists transactions, assets, liabilities and ownership interests held at period end as core records, and says you must be able to show your revenue stayed under the threshold in each relevant period.

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General information, not legal or tax advice. Checked against the official Ministry of Finance and Federal Tax Authority sources listed on this page on 9 November 2026. Rules and dates can be amended: confirm yours with the Federal Tax Authority or your adviser.