VIVOS UAE · Insights · 2027 Rule Changes, Episode 2
Small Business Relief Extended to 2029: Free Zone vs Mainland in Dubai (2026)
UAE Small Business Relief now covers tax periods ending on or before 31 December 2029 (Ministerial Decision 131 of 2026). A Dubai mainland company that is a resident person with revenue of AED 3 million or less in every tax period can elect it. A Qualifying Free Zone Person cannot, but can benefit from 0% on qualifying income instead.
What many pages still say: “Small Business Relief ends on 31 December 2026.”
What’s true since 29 July 2026: it covers tax periods ending on or before 31 December 2029, with the same AED 3 million limit (Ministerial Decision No. 131 of 2026).
Key facts (as of October 2026)
- Small Business Relief covers tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026).
- Revenue must be AED 3,000,000 or less in the current and every previous tax period (Federal Tax Authority).
- A Qualifying Free Zone Person can benefit from 0% corporate tax on qualifying income and cannot elect Small Business Relief (UAE Ministry of Finance; FTA).
| Company | Small Business Relief |
|---|---|
| Mainland, resident, revenue AED 3,000,000 or less every period | Can elect, each period |
| Free zone, Qualifying Free Zone Person | Cannot elect; 0% on qualifying income instead |
| Free zone, not a Qualifying Free Zone Person | Not named in the exclusions; resident and revenue tests apply |
| Member of a multinational group above AED 3.15 billion | Cannot elect |
| Revenue above AED 3,000,000 in any earlier period | Cannot elect, now or later |
Video (88 seconds): Is UAE Small Business Relief Ending in 2026? No, It Runs to 2029.
Can a Dubai free zone company use Small Business Relief?
Not if it is a Qualifying Free Zone Person (QFZP), a free zone company that meets the conditions to benefit from 0% corporate tax on qualifying income (UAE Ministry of Finance). The FTA lists QFZPs among those who cannot elect the relief. It names QFZPs, not free zone companies as such: a free zone company that is not a QFZP faces the same tests as a mainland one.
Small Business Relief or QFZP status: what is the difference?
- Small Business Relief: no taxable income for the period, but no other exemptions, reliefs or deductions either; revenue of AED 3,000,000 or less every period; elected each period (FTA).
- QFZP status: 0% corporate tax on qualifying income, if the conditions are met (UAE Ministry of Finance); no Small Business Relief (FTA).
Which suits a company depends on its facts: ask before you file.
How do you check your revenue history?
- List every tax period since the first, starting on or after 1 June 2023.
- Take revenue from financial statements under UAE-accepted accounting standards (UAE Ministry of Finance, 6 April 2023).
- Any period above AED 3,000,000 ends the relief for good. The FTA’s example: AED 4,300,000 in the period ending 31 December 2025 rules out 2026, even at AED 1,900,000.
- If one business runs through several companies, look at the whole: an artificial separation can fall under the anti-abuse rule in Article 50(1) of the Corporate Tax Law.
What does the Dubai company still file?
A return within 9 months of each tax period end, elected or not (UAE Ministry of Finance): for a 31 December year end, the 2026 return is due by 30 September 2027. Deals with a Singapore parent stay at arm’s length (FTA).
Frequently asked questions
Can a Dubai free zone company elect Small Business Relief until 2029?
Not if it is a Qualifying Free Zone Person, which the Federal Tax Authority lists among those who cannot elect the relief. The exclusion names Qualifying Free Zone Persons, not free zone companies as such, so other free zone companies face the resident and AED 3,000,000 revenue tests.
What is the difference between Small Business Relief and Qualifying Free Zone Person status?
Small Business Relief treats the tax period as having no taxable income, removes other reliefs for it, and needs revenue of AED 3,000,000 or less every period. A Qualifying Free Zone Person can benefit from 0% on qualifying income instead, and cannot elect the relief.
How do I check my Dubai company’s revenue history for Small Business Relief?
List every tax period since the first one, starting on or after 1 June 2023, with revenue from financial statements under UAE-accepted accounting standards. One period above AED 3,000,000 ends the relief for good. If one business runs through several companies, look at the whole.
Sources
- UAE Ministry of Finance, Ministerial Decision No. 131 of 2026 (official Arabic text, 29 July 2026). Checked 9 October 2026.
- UAE Federal Tax Authority, Small Business Relief. Checked 9 October 2026.
- UAE Ministry of Finance, Corporate Tax in the UAE. Checked 9 October 2026.
- UAE Ministry of Finance, release on Ministerial Decision No. 73 of 2023 (6 April 2023). Checked 9 October 2026.
Read the full guide to UAE Small Business Relief to 2029 and the rule changes tracker. Episode 1: UAE e-invoicing deadline. Next, on Tuesday 27 October 2026: Singapore YA 2026, your rebate, your grants, your deadline. See also free zone vs mainland, or talk to our team.
Reviewed by Ray Tay, VIVOS. VIVOS Corporate Services L.L.C., Commercial Licence No. 1638200, Unit 415, Churchill Executive Tower, Business Bay, Dubai · +971 56 408 7384 · contactvivos.uae@vivos.com.sg. Part of VIVOS Group with VIVOS Pte. Ltd. (Singapore, UEN 202416468C), VIVOS (M) Sdn. Bhd. (Malaysia) and VIVOS Corporate Services (HK) Ltd. (Hong Kong). Facts checked 9 October 2026. General information, not tax advice.
