Dubai, UAE: The UAE has extended its Small Business Relief (SBR) programme to give eligible small businesses more time under the relief framework. The Ministry of Finance announced on 7 August 2026 that Ministerial Decision No. 131 of 2026 extends Small Business Relief to tax periods ending on or before 31 December 2029.
The extension is important for small businesses and startups that meet the SBR conditions. The AED 3 million revenue threshold will continue to apply to the relevant tax periods. Businesses that qualify can benefit from simplified Corporate Tax compliance requirements under the relief.
September 30 Corporate Tax Deadline
The latest development comes as the Federal Tax Authority (FTA) reminds businesses about an immediate Corporate Tax filing deadline. On 2 September 2026, the FTA stated that Taxable Persons whose financial year ended on 31 December 2025 must file their Corporate Tax returns and pay any Corporate Tax due by 30 September 2026.
Importantly, being eligible for Small Business Relief does not remove the filing obligation. Businesses using the relief must still register for Corporate Tax, submit their simplified Tax Returns and maintain the documents needed to support their revenue and eligibility.
Who Can Benefit From Small Business Relief?
The FTA states that SBR can be elected by a Resident Person, including natural and juridical persons, when revenue is AED 3 million or less in both the current and all previous Tax Periods. A Qualifying Free Zone Person and a member of a multinational group with consolidated group revenue above AED 3.15 billion cannot elect for the relief.
The relief also requires an election for each Tax Period. It treats the eligible person as having no Taxable Income for that period, subject to the applicable rules and conditions.
What Happens If Businesses Ignore the Requirements?
Missing the required filing or failing to maintain supporting financial records can lead to administrative penalties under the relevant tax legislation. The FTA has specifically stressed that businesses should prepare their documents early and meet the applicable filing deadlines.
Businesses should therefore review their revenue, previous Tax Periods, Corporate Tax registration, supporting records and SBR eligibility before filing.
What UAE Businesses Should Do Now
Businesses with a 31 December 2025 year-end should not wait until the final day. They should review their Corporate Tax position, confirm whether they meet the SBR conditions, prepare the required records and complete their filing through EmaraTax before 30 September 2026.
The extension to 2029 provides longer-term certainty, but it does not remove the need for careful Corporate Tax compliance. With Corporate Tax rules and relief conditions requiring proper review, businesses can benefit from professional guidance when assessing their position.
Dubai Business & Tax Advisors (DBTA) can assist businesses with Corporate Tax and compliance matters, helping them review their position and understand the requirements that apply to their business before filing. This is particularly relevant for businesses that need to assess Small Business Relief alongside their wider accounting and financial obligations.
