Small Business Relief in the UAE: How to Legally Pay AED 0 Corporate Tax

Last updated: 24 July 2026. All figures from published FTA and Ministry of Finance rules; sources on our FAQ page.

Small Business Relief (SBR) is the single most valuable thing most small UAE businesses can do in their first Corporate Tax return. Elected correctly, it treats the business as having no taxable income for the period: tax due AED 0, with simplified compliance. Missed or done wrong, the same business can end up calculating and paying 9% tax it never owed.

Who qualifies

You are a UAE Resident Person (company or registered natural person).
Your revenue is at or below AED 3,000,000 in the current tax period AND in every previous tax period (counting periods that started on or after 1 June 2023).

One-way door: if revenue goes above AED 3M in ANY period, you are permanently disqualified from SBR, even if revenue later drops back down.

Who is excluded even under AED 3M

Qualifying Free Zone Persons: companies claiming the 0% free zone rate. You choose one regime or the other, not both.
Members of large multinational groups (consolidated group revenue above roughly AED 3.15 billion).

The two facts owners get wrong

It is not automatic. SBR must be actively elected inside each Corporate Tax return on EmaraTax. There is a specific election in the free-zone-and-elections section of the return. No election, no relief.
It is expiring. SBR is only available for tax periods ending on or before 31 December 2026. For calendar-year businesses, FY2025 (return due 30 September 2026) and FY2026 are the last two chances.

You still must file

Electing SBR does not remove the filing duty; the election lives inside the return. The deadline for the FY2025 return is 30 September 2026, and late filing costs AED 500 per month even when the tax due would have been zero.

How to claim it, step by step

Confirm eligibility: resident, revenue at or below AED 3M in this and all previous periods, not a Qualifying Free Zone Person, not part of a large multinational group.
Close your accounts for the period (cash basis is allowed up to AED 3M revenue).
Open the return in EmaraTax (eservices.tax.gov.ae), fill the financial sections from your accounts.
In the elections section, select the Small Business Relief election.
Review, submit before the deadline, and keep the acknowledgement plus records for 7 years.

Check your SBR eligibility free in 60 seconds

More: UAE Corporate Tax FAQ · The 30 September 2026 deadline guide