Tax Planning

Small Business Relief Extended in UAE: What Entrepreneurs Should Do Now

UAE firms with under AED 3 million in revenue can continue using simplified compliance until end-2029. Here’s how to qualify and strategize.

By NomadicTax Research Team • 5-8 min read • August 28, 2026

## Summary of the Relief In the UAE, **Ministerial Decision No. 131 of 2026** extends *Small Business Relief* until **31 December 2029**. Businesses with annual revenue not exceeding **AED 3 million** can still enjoy simplified corporate tax compliance under the provisions of Ministerial Decision No. 73 of 2023. ([mof.gov.ae](https://mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/?utm_source=openai)) ## What the Relief Means for You Small businesses meeting the threshold benefit from: - Reduced filing and reporting burdens - Lower administrative costs - More predictable tax liabilities Compliance obligations remain, but many documentation and disclosure requirements are eased. ([mof.gov.ae](https://mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/?utm_source=openai)) ## Strategic Implications & Best Practices Here’s what SMEs should do: - **Track Revenue Carefully**: Ensure your annual turnover stays at or below AED 3 million. If you exceed in a fiscal year, you’ll exit the relief regime. - **Consider Structural Clarity**: If you have subsidiaries or related entities, only those with separate evaluation are subject to threshold calculations. - **Document Eligibility Periods**: Since the relief applies to tax periods ending on or before 31 December 2029, plan ahead to anticipate when you’ll no longer qualify. - **Use Relief for Growth Planning**: The simplicity lets you invest more in operations or innovation rather than compliance. ## Context: UAE’s Broader Tax Landscape The extension aligns with the UAE’s broader push to balance revenue needs with a business-friendly environment. Earlier 2026 policies addressed Pillar Two, excise tax revisions, and transparency measures. ([mof.gov.ae](https://mof.gov.ae/en/financial-legislation/?utm_source=openai))