The UAE's Ministry of Finance has extended Small Business Relief for corporate tax purposes to cover tax periods ending on or before December 31, 2029, giving small businesses several more years of simplified compliance.

The change comes through Ministerial Decision No. (131), announced on Friday, which amends the existing Ministerial Decision on the Taxation of Corporations and Businesses. It builds on Ministerial Decision No. (73) of 2023, which first introduced the relief threshold for tax periods starting on or after June 1, 2023.

Who qualifies

Small Business Relief applies to Taxable Persons with annual revenue not exceeding AED3 million. Businesses under this threshold can benefit from simplified Corporate Tax compliance requirements rather than the fuller obligations larger companies face.

With this extension, that AED3 million threshold now continues to apply through tax periods ending on or before December 31, 2029, giving eligible businesses a longer runway of relief than previously set.

What businesses still need to do

Relief is not automatic. Eligible businesses must actively elect to apply Small Business Relief through their Corporate Tax returns. Beyond that election, businesses claiming the relief are still required to register for Corporate Tax, submit simplified tax returns, and maintain records that support what they report.

In other words, the relief simplifies the compliance burden but does not remove it entirely — small businesses still need to stay on top of registration and recordkeeping even while benefiting from the streamlined process.

Filing deadlines to note

The Federal Tax Authority has also confirmed a key date for businesses more broadly: those whose financial year ended on December 31, 2025 must submit their Corporate Tax returns and settle any Corporate Tax due no later than September 30, 2026.

For small businesses weighing whether to apply for relief, that deadline is a useful anchor point alongside the newly extended eligibility window running through the end of 2029.

The extension gives small business owners in the UAE clarity on how long the simplified regime will remain available, which matters for anyone planning their tax position over the next several years rather than just the current filing cycle.

Reported by Economy Middle East.