The amendment extends the small business tax relief period to 31 December 2029. Credit: Natalya Bardushka/Shutterstock.com.
The United Arab Emirates’ (UAE) Ministry of Finance (MoF) has extended the time frame for companies to claim Small Business Relief to include tax periods ending on or before 31 December 2029.
The change was introduced through Ministerial Decision No. (131), which amends provisions of the existing decision on the Taxation of Corporations and Businesses.
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According to the MoF, the decision is part of the government’s broader effort to support small businesses and start-ups, improve the business environment and help entrepreneurs scale their operations.
“It 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,” a statement said.
Under the new decision, the revenue threshold set out in Ministerial Decision No. (73) of 2023 will continue to apply to tax periods starting on or after 1 June 2023.
It will also apply to subsequent tax periods ending on or before 31 December 2029.
Small Business Relief is designed to reduce the compliance burden for eligible taxpayers.
Taxable individuals with annual revenue of up to Dh3m ($816,882) will benefit from simplified corporate tax compliance rules, subject to the conditions and requirements specified in the relevant legislation.
Earlier this year, the MoF, along with the Federal Tax Authority and Dubai Chambers, held an awareness session on the national eInvoicing regime.
The event outlined the eInvoicing system’s goals and how it supports the country’s digital transformation agenda by boosting efficiency and transparency.
More than 500 private sector representatives and senior government officials participated in the session.
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