Tax Relief for Small Businesses in the UAE
Since the introduction of the UAE Corporate Tax system in 2023, many entrepreneurs and foreign investors have been actively restructuring their operations to remain compliant and tax efficient.
To support startups and SMEs, the UAE government has launched a key initiative – the Small Business Relief program. This regime is designed to ease the tax burden for companies with annual revenues below AED 3 million, offering a major advantage during their early growth stage.
At Premia TNC, we guide our clients in effectively leveraging this tax relief, ensuring full compliance while optimizing their corporate tax exposure.
What is the Small Business Relief?
The Small Business Relief (SBR) is a provision under the UAE Corporate Tax Law that allows eligible businesses to elect to be treated as having no taxable income, effectively reducing their corporate tax liability to 0%.
This incentive is aimed at nurturing entrepreneurship and promoting SME growth within the region.
Who Is Eligible?
Criteria | Details |
Annual Revenue | AED 3 million or less (for tax periods from 2022 to 2026) |
Entity Type | UAE Resident Taxable Persons (including certain Free Zone entities) |
Exclusions | Multinational Enterprises (MNEs), regulated sectors such as oil & gas, or entities exceeding revenue limits |
💡 Note: If a business exceeds the AED 3 million threshold in any tax year, it will not be eligible for SBR for that period.
Key Benefits of the Program
- 0% Corporate Tax: Treated as having no taxable income
- Lower Administrative Burden: Simplified tax filings and calculations
- Ideal for Startups and SMEs: Supports early-stage growth by reducing tax obligations
- Available to both Local and Foreign-Owned Companies
Important Considerations
- Explicit Election Required: You must opt-in to the SBR regime in your tax return
- Ongoing Revenue Monitoring: Ensure continued eligibility each tax year
- Anti-Abuse Provisions Apply: Artificial arrangements to reduce revenue will trigger tax audits
- Prepare for Future Tax Exposure: Once your revenue exceeds the limit, the standard 9% ratewill apply
Why Work with Premia TNC?
Navigating the UAE’s evolving tax landscape requires strategic insight and local expertise.
Premia TNC offers end-to-end support, from eligibility assessment to corporate tax return filing and long-term structuring.
Our Strengths:
✅ Multilingual consultants (English, Korean, Chinese)
✅ Expertise in both mainland and Free Zone company compliance
✅ Advisory on cross-border tax planning for global businesses
✅ Proven track record supporting startups and SMEs in the UAE
📞 Get Started Today
The Small Business Relief is a time-limited opportunity designed to empower entrepreneurs and support sustainable growth.
Make sure you’re taking full advantage of it – with the right strategy and the right partner.