UAE Corporate Tax Small Business Relief (SBR) 2025 — Eligibility, Dates & How to Claim | Mybiz

What is Small Business Relief?

Small Business Relief lets eligible UAE resident businesses be treated as having no taxable income for a tax period when their revenue is ≤ AED 3,000,000—meaning no corporate tax for that period if you elect the relief in your return. FTA UAE

Who qualifies? (Checklist)

You can elect SBR for a given tax period if all the below are true:

• You are a Resident Person for Corporate Tax purposes.

• Your revenue ≤ AED 3,000,000 in the relevant period and all previous tax periods (within the SBR window). If you ever exceed the threshold in a relevant/previous period, you cannot elect SBR. UAE Ministry of Finance

• Your tax period starts on/after 1 June 2023 and ends on/before 31 December 2026.

• You are not a member of a Multinational Enterprise (CbCR) group and not a Qualifying Free Zone Person.

Note: Revenue must be measured under UAE-accepted accounting standards; tax groups are tested on consolidated revenue.

What do you get (and give up) with SBR?

Benefits

• Treated as having no taxable income for that period.

• Simplified CT return and no transfer-pricing documentation requirement for that period.

Trade-offs

• You cannot create or use tax losses for that period; brought-forward losses remain and can be used in a non-SBR year.

• You cannot deduct or carry forward net interest expense for that period; prior carry-forwards are preserved for a non-SBR year.
  

Anti-fragmentation: don’t split revenue to qualify

If the FTA determines you artificially separated one business into multiple entities or periods to keep each under AED 3m, SBR can be denied and tax plus penalties can apply under the GAAR. The FTA examines financial, economic, and organisational links (functional, geographical, or temporal separation).

Worked insight: how much does SBR save?

Without SBR, CT is 0% up to AED 375,000 of taxable income, then 9% above that. The actual saving depends on your profit: higher profit (still ≤ AED 3m revenue) means more tax avoided for that period when SBR is elected.

Common edge cases

• Exceeded AED 3m once? You’re out of SBR in that relevant/previous period range.

• Qualifying Free Zone Person? SBR not available (your own 0% regime may already apply to qualifying income).

• Member of an MNE group (CbCR)? SBR not available.
  

Act before the window closes

SBR currently applies for tax periods that start on/after 1 June 2023 and end on/before 31 December 2026. Plan filings and revenue monitoring now so you don’t miss eligibility.