UAE Extends Small Business Relief Until 2029

The Ministry of Finance has officially extended the AED 3 million threshold for three more years — here's what changed in the 7 August 2026 decision and what it means for small businesses.

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On 7 August 2026, the UAE Ministry of Finance officially extended Small Business Relief (SBR). The AED 3,000,000 revenue threshold now applies to tax periods ending not later than 31 December 2029, instead of the end of 2026 as originally legislated. Small businesses now have three more years to benefit from the Corporate Tax exemption, without needing to rush a switch to the standard rate as early as 2027.

What actually changed

The relief was originally established under Ministerial Decision No. 73 of 2023 (published 6 April 2023) and applied to tax periods ending before 31 December 2026 — a full breakdown of that original version of the relief is in our article "Small Business Relief in the UAE: Corporate Tax Exemption." The new decision from 7 August 2026 extends that deadline by three more years, to 31 December 2029. The rest of the relief's conditions are unchanged:

  • the revenue threshold stays the same — AED 3,000,000 for the current and preceding tax period;
  • the relief remains unavailable to Qualifying Free Zone Persons (QFZPs);
  • the relief remains unavailable to members of multinational enterprise groups with consolidated group revenue exceeding AED 3.15 billion.

What this means for your business

If your company was already claiming Small Business Relief, or planning to, the extension removes the pressure to rework your tax strategy ahead of 2027. Businesses whose revenue stays consistently below AED 3 million can keep paying zero Corporate Tax for three additional tax periods — through periods ending on or before 31 December 2029.

Note: the requirement to file a simplified tax return within 9 months of the end of the tax period hasn't gone anywhere — the relief zeroes out the tax amount, but it doesn't remove the reporting obligation.

Where this information comes from

The decision is published on the official website of the UAE Ministry of Finance (mof.gov.ae) and confirmed by independent business publications. If you're not sure whether the relief applies to your company given the extension, we can go over your situation in 15 minutes on Telegram or WhatsApp.

Bottom line

Extending Small Business Relief to 2029 is good news for small businesses in the UAE: companies with revenue under AED 3 million now have three more years to legally avoid paying Corporate Tax, provided they keep filing the simplified return on time.

Publication date: 14.08.2026
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Frequently asked questions
When was the decision to extend Small Business Relief made?
On 7 August 2026. The UAE Ministry of Finance published the extension decision on its official website, mof.gov.ae.
Until what year does the relief now apply?
To tax periods ending on or before 31 December 2029 — three years later than the original legislation (31 December 2026).
Did the AED 3 million revenue threshold change?
No. The threshold is unchanged — AED 3,000,000 for the current and preceding tax period. The extension only changes how long the relief is available, not the revenue threshold itself.
Do I need to file anything extra to benefit from the extension?
No. The application process hasn't changed — you still select the "Small Business Relief" option when filing the simplified tax return. The requirement to file within 9 months of the end of the tax period still applies.
Who is still excluded from the relief?
Qualifying Free Zone Persons (QFZPs) and members of multinational enterprise groups with consolidated group revenue exceeding AED 3.15 billion — the extension didn't change either exclusion.
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