The UAE Ministry of Finance has extended the deadline for Small Business Relief eligibility to tax periods ending on or before 31st December 2029, giving smaller enterprises and start-ups several more years of simplified corporate tax compliance.
The extension comes through Ministerial Decision No. (131), which amends provisions within the existing Ministerial Decision on the Taxation of Corporations and Businesses. The move builds on Ministerial Decision No. (73) of 2023, which first introduced the relief scheme.
Under the updated rules, the AED3 million annual revenue threshold established in 2023 remains unchanged. It continues to apply from tax periods commencing on or after 1st June 2023 through to those ending by the end of 2029. Businesses whose revenue falls within this threshold can benefit from streamlined corporate tax requirements, easing the administrative burden that often weighs heaviest on smaller operators.
The ministry has framed the decision as part of a broader push to support entrepreneurship and small business growth across the UAE. Officials say the extension is designed to strengthen the country's business environment and give founders more room to scale their ventures without being weighed down by complex tax obligations.
Beyond its immediate impact on small businesses, the decision also speaks to the UAE's wider economic ambitions. By extending the relief period, the ministry is reinforcing the country's positioning as a competitive destination for global investment, while signalling continued alignment with international tax standards.
The update also reflects the UAE's ongoing effort to balance business-friendly policy with compliance and sustainable economic development, a theme that has underpinned much of the country's tax legislation since corporate tax was introduced.
For small business owners and entrepreneurs, the extension offers welcome clarity and a longer runway to plan ahead.
News Source: Emirates News Agency
