27/10/2026
For the UAE’s smaller businesses, the Corporate Tax planning horizon just moved by three years.
Ministerial Decision No. 131 of 2026 extends Small Business Relief to tax periods ending on or before 31 December 2029, with the AED 3 million revenue threshold unchanged. The extension offers certainty, but the relief rewards businesses that treat it as a deliberate decision rather than a default.
Three considerations stand out:
Eligibility is cumulative, not periodic. Revenue is tested across the current and all prior tax periods. Exceeding AED 3 million once removes access permanently, which makes growth timing a tax question.
The relief must be actively claimed. Registration, filing and an explicit election remain prerequisites. Businesses that assume it applies automatically risk losing it.
Electing is not always optimal. For businesses carrying tax losses, the relief can reduce long-term value. The right answer depends on the trajectory of the business, not just this year’s revenue.
The extension buys time. The businesses that benefit most will be those that use it to plan, not simply to defer.
To assess whether the relief fits your position, comment SBR or book a 30-minute review with our tax team.
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