Small Business Relief calculator for UAE corporate tax

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.

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.

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.

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.

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.

SBR is not automatic — you elect it on your Corporate Tax return, which is filed on EmaraTax within 9 months of the end of your tax period. Confirm eligibility first: Resident Person status, revenue at or below AED 3,000,000 in the current and all prior tax periods, not a Qualifying Free Zone Person, not part of an MNE group, and a tax period ending on or before 31 December 2026. When you elect, taxable income is treated as nil for that period and no CT is payable. You still register for Corporate Tax and file a return — SBR removes the tax, not the filing obligation. Velmont Crest prepares the eligibility workpapers and CT computation, then supports the election alongside your registered tax agent.

No. Electing SBR does not exempt you from Corporate Tax registration or from filing a Corporate Tax return. Every Taxable Person must register with the FTA and file annually, even where SBR reduces the liability to zero. SBR is a return-level election that treats taxable income as nil — the compliance obligations (registration, bookkeeping, the CT return filed within 9 months of period end) all remain. Missing registration or filing deadlines still triggers administrative penalties regardless of SBR.

Yes, provided it qualifies. A Dubai (or any Emirate) mainland LLC is a Resident Person and can elect SBR if its revenue stays at or below AED 3,000,000 in the current and every prior tax period, it is not part of a Multinational Enterprise group, and its tax period ends on or before 31 December 2026. Mainland LLCs are not affected by the Free Zone / QFZP exclusion because that carve-out only applies to entities that have elected QFZP status. For a mainland LLC on AED 2.1M revenue with AED 500,000 taxable income, SBR saves the AED 11,250 that would otherwise be due at the 9% rate above AED 375,000.