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Free UAE Tool — Updated 22 June 2026

UAE Small Business Relief Checker

Test eligibility for Small Business Relief UAE under Ministerial Decision No. 73 of 2023 and Federal Decree-Law 47/2022, Article 21. SBR allows qualifying Resident Persons with revenue ≤ AED 3,000,000 to elect a 0% Corporate Tax outcome — but only for tax periods ending on or before 31 December 2026.

Your tax period and SBR conditions

Gross revenue for the tax period under your CT-applicable accounting standard. Commas allowed.

Are you a Free Zone Person electing QFZP status?

Did revenue exceed AED 3M in any previous tax period?

Under MD 73/2023, a single previous AED 3M+ period permanently disqualifies the entity.

Is your tax period ending on or before 31 Dec 2026?

SBR eligibility

Revenue threshold
AED 3,000,000
Your revenue
—
Est. CT saving
—
Status
—

Enter your tax period revenue and answer the conditions to test SBR eligibility under MD 73/2023.

Speak to a Velmont CT advisor

The relief explained

What is Small Business Relief in the UAE?

Small Business Relief (SBR) is a transitional UAE Corporate Tax election introduced by Ministerial Decision No. 73 of 2023, exercising the authority of Article 21 of Federal Decree-Law No. 47 of 2022. Its purpose is to ease the compliance burden on micro and small UAE businesses during the early years of the Corporate Tax regime.

A Resident Person whose revenue does not exceed AED 3,000,000 in the relevant tax period — and in all previous tax periods — may elect on its filed Corporate Tax return to be treated as having no taxable income for that tax period. The practical result is a 0% CT outcome on Corporate Tax that would otherwise apply at 9% above the AED 375,000 threshold.

SBR is available only for tax periods ending on or before 31 December 2026. After this date, the relief sunsets unless extended by a future Cabinet Decision. During an SBR-elected period, the Taxable Person cannot utilise tax losses, cannot apply general interest deduction limitation carry-forwards, and cannot claim foreign tax credits — these are deferred to future taxable periods where the entity is subject to standard CT.

Eligibility checklist

Who can elect Small Business Relief?

  • Resident Person

    Juridical or natural person resident in the UAE. Non-resident persons with a UAE Permanent Establishment are NOT eligible.

  • Revenue ≤ AED 3,000,000

    Gross revenue for the tax period AND for all previous tax periods. A single prior breach is permanent.

  • Tax period ends on/before 31 Dec 2026

    SBR sunsets after this date unless a future Cabinet Decision extends the window.

  • Not a Qualifying Free Zone Person

    QFZP-electing Free Zone Persons access 0% on Qualifying Income through QFZP rules instead. SBR and QFZP are mutually exclusive.

  • Not a Multinational Enterprise group member

    Constituent companies of MNE groups (consolidated revenue ≥ AED 3.15B) are excluded. Tax-group revenue is assessed in aggregate.

  • Election made on the CT return

    SBR is not automatic. The Taxable Person must affirmatively elect it on the filed Corporate Tax return for the period via EmaraTax.

Worked example

Dubai mainland LLC: AED 2.1M revenue, AED 1.6M expenses.

Without SBR (standard 9%)

Revenue
AED 2,100,000
Deductible expenses
AED 1,600,000
Taxable income
AED 500,000
0% band (first 375k)
AED 0
9% × AED 125,000
AED 11,250
CT liability
AED 11,250

With SBR election (MD 73/2023)

Revenue
AED 2,100,000
Within AED 3M threshold
Yes ✓
Tax period
Ends 31 Dec 2025
Pre-2027 sunset
Yes ✓
Treated taxable income
AED 0
CT liability
AED 0

CT saving from electing SBR

The Dubai mainland LLC saves AED 11,250 on this single tax period by electing SBR. A larger SME closer to the AED 3M threshold — say AED 2.85M revenue, AED 1.1M expenses, AED 1.75M taxable income — would save AED ~123,750 (9% × (1,750,000 − 375,000)). For the marginally larger profile of AED 2.95M revenue with AED 2.1M taxable income, the saving climbs to approximately AED 155,250. Election is made on the Corporate Tax return filed via EmaraTax — Velmont can prepare the workpapers, review the eligibility position and file alongside your tax agent.

Scope & disclaimer

This tool checks SBR eligibility against the threshold and structural conditions of Ministerial Decision 73/2023 and Article 21 of FDL 47/2022. It does not assess: revenue measurement under your applied accounting framework, related-party aggregation, anti-avoidance arrangements, tax-group election interactions, or the substantive accuracy of any election. Tax positions depend on your specific facts; an election can be reviewed and challenged by the FTA.

Only an election made on a filed Corporate Tax return can authoritatively claim SBR. Velmont Crest is a DED-licensed UAE accounting firm. We work alongside your registered tax agent to prepare CT computations, workpapers and supporting evidence. Speak to a qualified advisor before filing.

SBR FAQs

Quick answers on UAE Small Business Relief.

What is Small Business Relief in the UAE?

Small Business Relief (SBR) is a UAE Corporate Tax election under Ministerial Decision No. 73 of 2023, made under Article 21 of Federal Decree-Law 47/2022. A Resident Person whose revenue does not exceed AED 3,000,000 in the current tax period AND all previous tax periods may elect to be treated as having no taxable income for that tax period — effectively a 0% Corporate Tax outcome. The relief is currently available only for tax periods ending on or before 31 December 2026, after which it sunsets unless extended.

What's the AED 3M threshold based on — revenue or taxable income?

Revenue, not taxable income. The AED 3,000,000 cap is measured on gross revenue per tax period (typically the financial year). 'Revenue' for SBR follows the accounting standards applied for CT purposes — usually IFRS or IFRS for SMEs. The cap also applies retrospectively: a Taxable Person cannot elect SBR if revenue exceeded AED 3M in any previous tax period. A single AED 3.0M+ period permanently disqualifies the entity from electing in any later period.

Can a free-zone company claim SBR?

No. SBR is available only to Resident Persons that are NOT a Qualifying Free Zone Person (QFZP). Free zone entities that elect QFZP status to access the 0% CT rate on Qualifying Income cannot also elect SBR. If a free zone entity does NOT elect QFZP status (and is therefore taxed under the standard 9% regime as a Resident Person), it may elect SBR — provided it meets the AED 3M revenue threshold and other conditions. The two reliefs are mutually exclusive.

Does SBR sunset?

Yes. Under MD 73/2023, SBR is available only for tax periods ending on or before 31 December 2026. A calendar-year tax period ending 31 December 2026 is the final eligible period under the current decision. The Cabinet may extend the window, but no extension has been announced. Plan filings around the current sunset — entities relying on SBR for cashflow should model the 9% liability that returns from the 2027 tax period onwards.

What if my revenue is just over AED 3M?

Once revenue exceeds AED 3,000,000 in any tax period, SBR is unavailable for that period AND for all future periods — the disqualification is permanent under MD 73/2023. The standard Corporate Tax regime applies instead: 0% on the first AED 375,000 of taxable income and 9% above that. A Resident Person at AED 3.05M revenue with AED 500,000 taxable income would owe approximately AED 11,250 (9% × (500,000 - 375,000)). Talk to a CT advisor before treating a near-threshold position as borderline — there is no rounding or transitional relief.

See Corporate Tax services WhatsApp an SBR question

Authority sources

Read the source legislation and file your election.

Velmont Crest accounting advisor — Dubai SME engagement

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