Tax · Defined Term
Small Business Relief.
A UAE Corporate Tax election allowing entities with low turnover to deem their taxable income to zero. Available for tax periods ending on or before 31 December 2026.
Eligibility
- UAE resident person (excluding Qualifying Free Zone Persons and entities in MNE groups above the Pillar Two threshold).
- Total revenue for the tax period (and the previous tax period, if any) does not exceed AED 3 million (~USD 818,000).
Effect
Taxable income is deemed to be zero, regardless of actual profit. Loss carry-forwards are unavailable while in the regime; tax losses do not accumulate.
When it's worth electing
For early-stage mainland LLCs, F&B businesses, retail and consulting practices where revenue stays below AED 3m. Not useful for free-zone companies that already qualify for QFZP 0%.