Small Business Relief: no tax, but you still have to file
3 Aug 2026
On 3 August 2026 the FTA restated a point that trips up many small businesses: Small Business Relief changes how much tax you pay, not whether you comply.
What the relief does
An eligible UAE resident person is treated as having no taxable income if its revenue does not exceed AED 3 million for the relevant tax period and all previous tax periods. The relief is elected in the Corporate Tax return.
What it does not do
- It does not remove the need to register for Corporate Tax.
- It does not remove the need to file. Eligible businesses file a simplified return, which asks for less information.
- It does not remove the record-keeping duty. You must be able to show the FTA that revenue stayed within the threshold in every period.
Timing
The filing deadline is the same as for everyone else: nine months from the end of the tax period. The relief is available only for tax periods ending on or before 31 December 2026, so a calendar-year business will be in the regular regime from its 2027 period. Model that step-up now using the Corporate Tax simulation.
Summary for general information, not advice. This article covers United Arab Emirates only; rules in other countries differ. Check the official text and your own circumstances. Last reviewed 3 Aug 2026.