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UAE Small Business Tax Relief

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-08-08 08:24 UTC → 2026-08-14 07:13 UTC · added removed

In early August 2026 2026, the United Arab Emirates Federal Tax Authority (FTA) reminded firms that qualify qualifying for the Small Business Relief scheme to file simplified corporate‑tax corporate tax returns and meet a filing deadline of 30 September 2026. The reminder stressed that eligible companies must still register, submit a zero‑income return zero-income return, and retain supporting documentation, even though the relief reduces reporting requirements. Abdulaziz Mohammed Al Mulla, Director General of the FTA, emphasized early preparation to avoid penalties. A few days later later, the Ministry of Finance issued Ministerial Decision No. 131, amending the corporate‑tax corporate tax framework to extend the Small Business Relief programme through the end of 31 December 2029. The extension retains the AED 3 million revenue threshold and continues to offer simplified compliance, positioning the measure as part of a broader effort to support start‑ups, promote digital invoicing start-ups and align the UAE tax system with international best practices. Additionally, the FTA announced a waiver for the standard AED 10,000 late-registration penalty under FTA Decision No. 3 of 2024. To qualify, businesses must file their first corporate tax return within seven months following the end of their first tax period. For example, businesses with a tax period ending 31 December 2025 must meet this requirement by 31 July 2026, a deadline distinct from the standard nine-month statutory filing period.

Versions

  1. 2026-08-14 07:13 UTC UAE Small Business Tax Relief
  2. 2026-08-08 08:24 UTC UAE Small Business Tax Relief

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