Small Business Relief (SBR) lets eligible UAE resident businesses be treated as having no taxable income for a tax period. It is a valuable relief, but it comes with conditions.
The revenue test
You can elect for SBR if your revenue in the relevant tax period and all previous tax periods did not exceed AED 3 million. The relief is available for tax periods ending on or before 31 December 2026.
Who cannot use it?
- Qualifying Free Zone Persons
- Members of multinational enterprise groups meeting the global revenue threshold
- Businesses that have artificially split activities to stay under the limit
What do you give up?
If you elect SBR, you cannot carry forward tax losses or net interest expenditure from that period, and certain other reliefs do not apply.
You still need bookkeeping
SBR does not remove the obligation to register, file a return and keep proper records. Clean books are also the only way to prove your revenue stays within the limit.
Try our Corporate Tax estimator to see how SBR affects your position, then talk to our team for advice specific to your business.
