Small Business Relief UAE — Corporate Tax Service

Small Business Relief (SBR) is one of the most important reliefs available under UAE Corporate Tax, allowing eligible small businesses to treat their Taxable Income as zero for a Tax Period — effectively paying no Corporate Tax for that year. At Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP, we are licensed by the UAE Ministry of Economy (Local Auditors Record No. LC0106-01) and registered as a licensed FTA Tax Agent (TAN: 30003958 | TAAN: 20033908). We help UAE SMEs assess eligibility, make the correct election, and comply with all SBR conditions under Cabinet Decision No. 55 of 2025.

We offer a full range of Corporate Tax services in the UAE, including Corporate Tax Return Filing and Corporate Tax Compliance Review. Learn more about our firm and our team.

What is Small Business Relief Under UAE Corporate Tax?

Under Cabinet Decision No. 55 of 2025 (replacing Cabinet Decision No. 73 of 2023), a Resident taxable person may elect for Small Business Relief for a Tax Period if their Revenue for that Tax Period does not exceed AED 3,000,000. When the election is made on the Corporate Tax Return, the business is treated as having zero Taxable Income — meaning no Corporate Tax is payable for that period.

Key conditions and limitations of Small Business Relief UAE:

• Revenue must not exceed AED 3,000,000 for the Tax Period
• The person must be a Resident Person (not a Non-Resident or Exempt Person)
• The election cannot be made by a member of a Multinational Enterprise (MNE) Group
• The election must be made on the Corporate Tax Return
• Interest deduction limitations and transfer pricing rules do not apply when SBR is elected
• Tax losses and excess Net Interest Expenditure cannot be carried forward in a period where SBR is elected

Our Small Business Relief UAE Services

1. SBR Eligibility Assessment

We assess whether your business meets all conditions for Small Business Relief under Cabinet Decision No. 55 of 2025, including the AED 3 million revenue threshold, residency status, and MNE Group exclusion. Early assessment avoids incorrect elections and potential penalties from the Federal Tax Authority.

2. Revenue Calculation Review

We review your revenue calculation to ensure it is correctly computed for SBR purposes — including all sources of income that constitute Revenue under the Corporate Tax Law. This is critical as an incorrect revenue calculation could disqualify the election or expose you to FTA penalties.

3. SBR Election & Corporate Tax Return Filing

As a licensed FTA Tax Agent (TAN: 30003958), we make the Small Business Relief election on your Corporate Tax Return filed directly via the EmaraTax portal, ensuring the election is properly documented and submitted on time.

4. Multi-Year SBR Planning

We advise on the long-term implications of electing SBR — particularly the loss of tax loss carry-forward rights — to ensure the election is the optimal choice for your business's overall UAE corporate tax position across multiple Tax Periods.

5. SBR & Corporate Tax Registration

Small Business Relief does not exempt your business from the obligation to register for Corporate Tax with the FTA. We ensure your business is correctly registered, and the SBR election is properly reflected in your Corporate Tax Return, avoiding compliance gaps.

Why Choose Abdelhamid & Co for Small Business Relief in the UAE?

• Licensed by the UAE Ministry of Economy — Local Auditors Record No. LC0106-01
• Licensed FTA Tax Agent — TAN: 30003958 | TAAN: 20033908
• SME-focused — deep understanding of small business tax obligations in the UAE
• Proactive multi-year planning advice to protect your tax position
• Integrated service: SBR eligibility + CT return filing via EmaraTax
• Serving mainland and Free Zone companies across all UAE Emirates
• Bilingual team — Arabic and English

Frequently Asked Questions — Small Business Relief UAE Corporate Tax

What is the revenue threshold for Small Business Relief in the UAE?

Under Cabinet Decision No. 55 of 2025, the Small Business Relief UAE revenue threshold is AED 3,000,000 for the Tax Period. If your revenue exceeds this amount in any Tax Period, you cannot elect SBR for that period and standard Corporate Tax rates apply.

Does a business still need to register for Corporate Tax if it elects SBR?

Yes. Small Business Relief does not exempt a business from Corporate Tax registration or the obligation to file an annual Corporate Tax Return with the FTA. The SBR election is made within the return itself.

Can I carry forward tax losses if I elect Small Business Relief?

No. Tax losses and excess Net Interest Expenditure incurred in a Tax Period for which Small Business Relief UAE is elected cannot be carried forward to future Tax Periods. This trade-off must be carefully evaluated before making the election.

Can Free Zone companies elect Small Business Relief?

A Qualifying Free Zone Person (QFZP) cannot elect Small Business Relief, as they are already benefiting from a 0% rate on Qualifying Income. However, Free Zone entities that are not QFZP may be eligible. See our Free Zone Corporate Tax Eligibility page for more details.

What is the difference between SBR under Cabinet Decision 55 of 2025 vs 73 of 2023?

Cabinet Decision No. 55 of 2025 replaced Cabinet Decision No. 73 of 2023 and extended the Small Business Relief threshold of AED 3,000,000 to apply beyond the initial Tax Periods, making SBR available on an ongoing basis for eligible businesses. The core conditions remain the same.

Contact Us for Small Business Relief UAE

📞 Phone / WhatsApp: +971 50 794 8028
📞 Direct: +971 065 289 414
🌐 Office: Sharjah, Al Qasimia, Omran Tower, Office 302

Abdelhamid & Co. Certified Public Accountants & Auditors L L C SP — Licensed by the UAE Ministry of Economy (LC0106-01) | Licensed FTA Tax Agent (TAN: 30003958)

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