UAE Small Business Relief extended to tax periods ending by 31 December 2029
Reviewed 2026-08-25 · Editorial responsibility: Valusage Business Advisors Editorial Practice
Direct answer
Ministerial Decision No. 131 of 2026 extends the period during which eligible taxable persons may elect for Small Business Relief to tax periods ending on or before 31 December 2029. The AED 3 million revenue threshold continues, but eligibility is conditional and the relief does not remove Corporate Tax registration, return-filing or evidence-retention responsibilities.
Who should assess the impact
Affected teams and businesses
- Resident taxable persons assessing whether they can elect for Small Business Relief.
- Finance and tax teams preparing a Corporate Tax return for an eligible period.
- Business owners who need evidence of current and prior-period revenue before making the election.
Official source facts
What the announcement establishes
- The extension applies to tax periods ending on or before 31 December 2029.
- The AED 3 million annual revenue threshold continues to apply, subject to the legislation's conditions.
- The relief is an election for an eligible taxable person; it is not automatic.
- Registration, simplified return filing and supporting-record responsibilities continue.
Management response
What to review next
- 01Confirm the entity is a resident taxable person and is not within an excluded category.
- 02Test revenue for the current tax period and every relevant previous tax period.
- 03Retain evidence supporting revenue, taxable status and the election made in the return.
- 04Assess whether electing for the relief is appropriate before finalising the Corporate Tax return.
Valusage analysis
Practical implications for the finance and tax file
The extension changes the available period, not the underlying need to test eligibility. Management should avoid treating the announcement as a blanket exemption from Corporate Tax administration.
A practical review should connect revenue evidence, connected-person facts, Free Zone status and group information to the return decision. Entity-specific treatment depends on the current law, official guidance and the taxpayer's facts.
Related Valusage guidance
Continue the evidence and decision review
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Professional boundary
This original summary is general information. It is not a filing opinion, legal advice or a guarantee of authority acceptance, tax treatment, compliance or commercial outcome.
Review the related service →Does the extension make Small Business Relief automatic?+
No. An eligible taxable person must elect for the relief in the relevant Corporate Tax return and satisfy the applicable conditions.
Does Small Business Relief remove the need to file a Corporate Tax return?+
No. Eligible persons remain responsible for Corporate Tax registration and simplified return filing, together with records that support the information and election.
Is revenue of AED 3 million or less the only eligibility test?+
No. The revenue threshold is important, but excluded categories and other legislative conditions must also be considered using the entity's facts.
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