Small Business Relief

Small Business Relief UAE

Qualify for UAE Small Business Relief (SBR) — 0% Corporate Tax on qualifying income when revenue stays below AED 3 million. KPM Global Services assesses eligibility, manages FTA election, and ensures compliant annual filings.

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  • Revenue Under AED 3M
  • 0% CT Election
  • FTA Compliant

SBR Path

Small Business Relief UAE

Guided Process
1Assess
2Elect
3File
4Monitor

SME tax simplification

Not available to QFZP entities.

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Direct answer

Small Business Relief (SBR) allows eligible UAE resident persons with revenue up to AED 3 million per tax period to elect 0% Corporate Tax on qualifying income, subject to exclusions for QFZPs and certain groups. Election is required on EmaraTax.

Worked example

Example: Mainland consultancy with AED 2.5M revenue and AED 400k profit → SBR elected → AED 0 CT if conditions met (vs ~AED 2,250 without SBR on profit above AED 375k).

Last verified: June 2026

Fees and rules traced to official UAE authorities. KPM Global review cadence: monthly or on FTA/GDRFA updates.

Overview

UAE Small Business Relief explained

Small Business Relief (SBR) under UAE Corporate Tax Law allows qualifying resident persons with revenue not exceeding AED 3 million in a tax period and previous period to elect 0% tax treatment — simplifying compliance for micro and small enterprises.

SBR is unavailable to Qualifying Free Zone Persons (QFZP), members of multinational groups above threshold, and businesses electing standard CT regime. Revenue calculation follows FTA accounting standards with specific inclusions and exclusions.

KPM Global Services evaluates SBR eligibility, manages election on Corporate Tax return, and monitors revenue thresholds to advise when standard 9% CT rate applies.

Who This Is For

Small Business Relief clients

  • UAE SMEs with annual revenue under AED 3 million
  • Startups in first years below revenue threshold
  • Mainland service and trading micro-businesses
  • Free zone companies not electing QFZP status
  • Business owners confused about CT registration with low revenue
  • Companies approaching AED 3M threshold needing transition planning
How We Help

Small Business Relief advisory

Eligibility assessment

Confirm revenue threshold, resident status, and exclusion rules.

SBR election

File election on Corporate Tax return per FTA procedure.

Revenue monitoring

Track turnover to anticipate exit from SBR qualification.

CT registration

Register for Corporate Tax TRN even when electing SBR.

Transition planning

Plan standard 9% CT compliance when revenue exceeds threshold.

Return preparation

Prepare annual Corporate Tax return reflecting SBR election.

Process

Small Business Relief compliance steps

  1. 1

    Revenue review

    Analyse revenue per FTA definition for current and prior period.

  2. 2

    Exclusion check

    Confirm entity not QFZP, MNE group member, or otherwise excluded.

  3. 3

    CT registration

    Obtain Corporate Tax TRN from FTA if not registered.

  4. 4

    SBR election

    Elect Small Business Relief on annual tax return filing.

  5. 5

    Annual filing

    Submit Corporate Tax return within FTA deadline.

  6. 6

    Threshold monitoring

    Alert when revenue approaches AED 3M exit point.

Documents

SBR assessment documents

  • Financial statements and revenue breakdown
  • Trade licence and corporate structure details
  • VAT returns corroborating revenue figures
  • Related-party transaction records
  • Prior Corporate Tax returns if filed
  • QFZP election status confirmation
  • Group ownership structure for MNE exclusion test
  • Bank statements supporting revenue position
Pricing

SBR advisory costs

Lower complexity than full CT compliance but registration still required.

  • Initial eligibility assessment versus annual return filing
  • Financial statement preparation if records incomplete
  • Transition advisory when exceeding AED 3M threshold
  • Bundled with VAT and accounting services
  • CT registration as standalone or package step

SBR election errors can trigger penalties. KPM Global Services confirms eligibility before election filing.

Timeline

SBR compliance calendar

Post-licence

CT registration

Register for Corporate Tax within FTA deadline.

Financial year end

Assessment

Confirm revenue under AED 3M for SBR election.

+ 9 months

Return filing

File Corporate Tax return with SBR election.

Ongoing

Monitor

Track revenue for threshold breach planning.

Avoid Mistakes

Small Business Relief mistakes

  • Assuming no CT registration needed because revenue is low
  • Electing SBR while also claiming QFZP status — incompatible
  • Underreporting revenue including exempt income incorrectly
  • Missing CT return deadline despite SBR zero tax position
  • Not planning for 9% CT when revenue growth exceeds threshold
  • Ignoring related-party revenue aggregation rules
Why KPM

Why Choose KPM Global Services

UAE-focused advisory

Practical guidance on Small Business Relief advisory in the UAE from a Dubai-based team that works with authorities, banks, and regulators daily.

Clear documentation

Structured checklists, realistic timelines, and transparent scope so you know what is included before you proceed.

Connected services

Link setup, visas, banking, accounting, VAT, Corporate Tax, PRO, and legal support through one coordinated advisory journey.

No generic templates

Advice is tailored to your activity, shareholders, jurisdiction, and operational plans — not a one-size-fits-all package.

Free tool

AED 3M revenue eligibility

Calculate and check before you speak to an advisor — FTA-aligned thresholds, instant results, PDF export.

SBR Checker

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FAQ

Small Business Relief UAE — Frequently Asked Questions

Practical answers about small business relief uae in the UAE.

Corporate Tax election allowing 0% tax for qualifying resident persons with revenue up to AED 3 million per tax period.

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