The UAE Ministry of Finance has extended the Small Business Relief period under the corporate tax system until the end of 2029. This move allows eligible businesses with annual revenues of up to AED 3 million to continue benefiting from simplified tax compliance requirements.

Under Ministerial Decision No. 131, the relief is now applicable for tax periods ending on or before December 31, 2029. Previously, the deadline was set for the end of 2026. The revenue threshold of AED 3 million remains unchanged.

The program was first introduced under Ministerial Decision No. 73 of 2023 and covers tax periods starting from June 1, 2023. Its objective is to reduce the costs and complexities of corporate tax compliance for small companies, startups, and micro-businesses.

According to the regulations, the taxable person must be a UAE resident, and their revenue in the relevant tax period and previous periods must not have exceeded the set threshold. If a business's revenue exceeds this limit in any relevant period, it will no longer be eligible for the relief under the prescribed conditions.

Eligible businesses that opt for the scheme for a specific tax period will be treated as having no taxable income, while also benefiting from simplified tax compliance requirements. However, utilizing this relief does not exempt them from obligations related to corporate tax registration and filing tax returns.

Qualifying Free Zone Persons and members of large multinational groups are not eligible for this relief. The Ministry of Finance stated that the extension of the scheme aims to provide further support to entrepreneurs and small businesses and to foster the growth of the private sector.