UAE Small Business Relief Sunsetting

The UAE's Small Business Relief (SBR) scheme, which allows businesses with revenue of AED 3 million or less to pay zero corporate tax, is due to expire on 31 December 2026. No extension has been announced to date.

Here is what this means for you:

1. 2026 is the last year to benefit from the relief under current rules. Make the most of it.

2. From 2027, standard corporate tax rates apply: 0% on profits up to AED 375,000, and 9% on anything above.

3. From 2027, you will have to produce a full set of accounts compliant with IFRS for SMEs, which entails detailed accounting records.

4. If your revenue exceeded AED 3 million in any period since June 2023, you are no longer eligible, even if it has since fallen below the threshold.