UAE Announces Extension of Small Business Tax Relief to 2029

On August 7, the Ministry of Finance of the United Arab Emirates announced the issuance of Ministerial Decision No. 131, amending the Small Business Relief provisions and extending the period during which the relief may be claimed to tax periods ending on or before December 31, 2029. This act aims to support small businesses and start-ups, as well as strengthen the business environment of the country.

The regime previously established by Ministerial Decision No. 73 of 2023 on Small Business Relief allows an eligible resident taxable person whose revenue does not exceed AED 3 million (USD 817,000) for the relevant and previous tax periods to opt for treatment as a person having no taxable income for the relevant tax period.

This threshold remains in place, but is no longer available to the following taxable persons:

– a Constituent Company of a Multinational Enterprise Group that is required to prepare a Country-by-Country Report;

– a Qualifying Free Zone Person.

Ministerial Decision No. 131