UAE's Ministry of Finance announced on 7 August 2026 that Small Business Relief will now run until the end of 2029. The extension follows Ministerial Decision No. 131, which amends earlier provisions and retains the AED3 million annual revenue threshold that was first set under Ministerial Decision No. 73 of 2023. The announcement was issued from Abu Dhabi, underscoring the capital’s role as the centre for fiscal policy decisions.
Extension details and impact
The amendment means the relief will apply to tax periods ending on or before 31 December 2029. The threshold set by Ministerial Decision No. 73 of 2023 – annual revenue not exceeding AED3 million – continues to apply to periods starting on or after 1 June 2023 and to all subsequent periods up to the new end date. By preserving the same revenue ceiling, the ministry avoids sudden shifts that could disrupt planning for SMEs that have structured their finances around the existing rule. Eligible businesses can continue to benefit from simplified corporate tax compliance under the same conditions, subject to the requirements outlined in the relevant legislation.
According to the WAM (Emirates News Agency) report, the decision is part of the ministry's ongoing efforts to support small businesses and start‑ups, strengthen the business environment, and enable entrepreneurs to grow and expand their operations. The relief also reduces administrative burden, allowing eligible firms to file a streamlined return rather than a full corporate tax return, which can free resources for growth initiatives. By keeping the relief in place, the government aims to reinforce the UAE's position as a leading global destination for investment and to sustain the attractiveness of its market for both local and foreign investors.
The extension also reaffirms the UAE's commitment to developing a competitive tax system that supports sustainable economic development, promotes compliance, and remains aligned with international best practices. Maintaining the AED3 million threshold helps ensure that smaller taxable persons are not burdened by complex corporate tax obligations, allowing them to focus on growth and innovation. Such policy continuity is viewed as a signal to investors that the UAE maintains a stable and predictable tax environment, which is a key factor when multinational companies assess regional hubs. This reflects the broader strategy of the Ministry of Finance to nurture a vibrant SME sector, seen as a key driver of diversification and long‑term prosperity in the Emirates.
