Small businesses in the UAE now have more time to benefit from Corporate Tax relief. If your business earns AED 3 million or less in revenue, you can continue to claim Small Business Relief (“SBR”) all the way through 2029 – three years longer than originally planned.
What should you keep in mind?
1. Check previous years
SBR eligibility is not based only on your current year’s revenue. Previous tax periods also matter, so review your revenue history before making the election.
2. Look beyond sales
The AED 3 million threshold is based on revenue, not just sales. Certain other income, including some foreign exchange gains and gains from asset or business disposals, may need to be considered.
3.Transfer pricing rules still apply
Claiming SBR does not excuse your business from transfer pricing requirements. Related party and Connected Party transactions still need to meet arm’s length principle.
4. Keep your accounts in order
Revenue should be determined based on the applicable accounting standards. Accurate and IFRS-compliant financial records are important to support your SBR position.
How can we help?
Our Corporate Tax team can help you assess SBR eligibility, review your revenue composition, and manage your SBR election and compliance requirements, especially now that the relief period has been extended to 2029.
Who we are
Re/think is an award-winning regional multi-service business advisory and outsourced services firm providing accounting, regulatory and compliance, tax and VAT advisory, audit, HR consultancy and recruitment services to regulated firms, multi- and single-family offices, and other operating businesses.
Established in the UAE in 2013, the firm has 80+ staff across three offices in Dubai and Abu Dhabi providing clients with timely, proactive and customized business solutions – from set-up and early development to the latest stages of a business lifecycle.