Does UAE Small Business Relief still end in 2026?

Ministerial Decision No. 131 of 2026 extended the threshold’s application to eligible tax periods ending on or before 31 December 2029.

Is Small Business Relief automatic below AED 3 million?

No. The person must satisfy the eligibility conditions and make the election for the relevant period. Previous periods and exclusions also matter.

UAE Small Business Relief Extended to 2029: Key Checks

UAE Small Business Relief: The 2029 Extension and Key Checks

UAE Small Business Relief now covers eligible tax periods ending on or before 31 December 2029 under the 2026 amendment. Relief still depends on meeting the rules and making an election. The extension does not make it automatic for every small company.

In short

The previous December 2026 end date has been extended to December 2029.
The AED 3 million revenue test considers the relevant and previous tax periods.
Qualifying Free Zone Persons and specified large multinational group members are excluded.

What changed in 2026?

The Ministry of Finance’s Ministerial Decision No. 131 of 2026 replaces the earlier time limit with periods ending on or before 31 December 2029. If you have saved guidance saying the relief ends in 2026, read it alongside the newer decision.

The date change is useful, but the company still needs an eligibility review for each period. Do not turn an extended deadline into a blanket promise of no tax.

Who should check eligibility?

The framework concerns eligible UAE-resident persons with revenue no higher than AED 3 million in the relevant and all previous tax periods. Qualifying Free Zone Persons and specified large multinational group members are excluded. Revenue is not the same as profit.

Ask an accountant to review the whole history, not only this year’s sales. A lower current figure does not erase an earlier period above the threshold.

What does the election change?

An eligible person making the election is treated as having no taxable income for that tax period under the relief. Registration, return submission and supporting records still need attention. The interaction with losses and other reliefs is a separate planning question; have it assessed before deciding.

Use a short decision file

Confirm the person’s residence status and eligibility category.
Record revenue for the current and relevant previous periods.
Check exclusions and any connected business arrangements.
Document the election and the basis for it.
Retain the return, calculations and supporting records.

A useful example before you file

Imagine a consultancy has lower sales this year after a larger earlier year. The important question is whether that earlier period prevents the election, not simply whether this year looks small. Take the period-by-period figures to your adviser instead of asking for an answer from the latest bank balance.

Use our registration guide for the separate onboarding obligation. Kompani can help organise accounting and tax support; your eligibility should be assessed from the current rules and your own records.