The UAE Ministry of Finance has issued Ministerial Decision No. 131 of 2026, extending the period during which Small Business Relief (SBR) remains available under the Corporate Tax regime. The AED 3 million revenue threshold—previously applicable only to Tax Periods ending on or before 31 December 2026—will now continue to apply to Tax Periods ending on or before 31 December 2029.
This extension provides welcome continuity for start‑ups and small businesses, allowing eligible taxpayers to elect for SBR for an additional three years, provided their revenue does not exceed AED 3 million in the relevant or any prior Tax Period and all other eligibility conditions remain satisfied.
The change is also significant for Free Zone Persons. Under the earlier rules, electing for SBR could temporarily jeopardise eligibility for Qualifying Free Zone Person (QFZP) status, potentially creating a period during which neither regime applied. Extending SBR to 2029 substantially reduces this risk and offers Free Zone businesses greater flexibility before transitioning to the QFZP regime.
Ministerial Decision No. 131 of 2026 was issued on 29 July 2026 and takes effect the day after publication.