Who can elect for the Relief?
- Resident Person (natural persons and juridical persons)
What are the conditions?
- Election for each Tax Period.
- Revenue equal to or less than AED 3,000,000 in both the current and all previous Tax Periods
What is the Relief?
- Treated as not having derived any Taxable Income in the Tax Period
- Other exemptions, reliefs and deductions are not available
- No transfer pricing documentation required, however, still needs to comply with the arm’s length principle
Who cannot elect for the Relief?
A Qualifying Free Zone Person
A member of a multinational group
with consolidated group revenue of more than AED 3.15 billion
Example: Revenue in previous Tax Periods
|Mr. Y operates a Business in Sharjah. He is a UAE Resident Person for Corporate Tax purposes. His Tax Period ends on 31 December each year.
|In the most recent Tax Period ending 31 December 2026, Mr. Y derived Revenue of AED 1,900,000. In the previous Tax Period ending 31 December 2025, he had Revenue of AED 4,300,000.
|Mr. Y is not eligible to benefit from Small Business Relief for the Tax Period ending 31 December 2026 as his Revenue has exceeded the threshold of AED 3,000,000 in the prior Tax Period.