The relief must be elected in the tax return, and the revenue test applies to the current and every earlier tax period. Qualifying free zone persons and members of large multinational groups cannot use it. The threshold and the last period it applies to are in the table below.
A business that elects the relief still keeps proper accounting records and files a return.
The rule in figures
| Rule | Figure | Source |
|---|---|---|
| Corporate Tax on taxable income above AED 375,000 (0% up to AED 375,000), for financial years starting on or after 1 June 2023 | 9% | Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses; Cabinet Decision No. 116 of 2022 |
| Small Business Relief, under which resident persons whose revenue is AED 3 million or less in the tax period (and each earlier one) may elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026 | AED 3,000,000 | Ministerial Decision No. 73 of 2023 on Small Business Relief |
Last reviewed 14 Nov 2026. A summary, not tax or legal advice. Confirm your obligations with an adviser.
How Civova handles it
Civova's Corporate Tax working paper records whether Small Business Relief is elected for the year, alongside accounting profit, adjustments and taxable income.