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Ministerial Decision No. 131 of 2026
UAE Small Business Relief Extended Until 31 December 2029
Amendment to Ministerial Decision No. 73 of 2023 on Small Business Relief
Small Business Relief (SBR) Now Runs Through 2029
On 29 July 2026, the UAE Ministry of Finance issued Ministerial Decision No. 131 of 2026, extending the Small Business Relief scheme for Corporate Tax purposes. The amendment updates Ministerial Decision No. 73 of 2023 — the original decision that introduced Small Business Relief under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. The extension gives eligible small businesses and start-ups three additional years of simplified Corporate Tax compliance.
Key fact: The AED 3 million annual revenue threshold has not changed. Only the final qualifying Tax Period has been pushed out to 2029.
For businesses across Sharjah, Dubai, and the wider UAE that rely on Small Business Relief to reduce their Corporate Tax burden, this extension removes the pressure of an approaching 2026 deadline and provides a longer runway for growth. As a Sharjah-based audit and tax consulting firm, Hussain Al Shemsi Chartered Accountants breaks down exactly what this means for eligible businesses.
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Timeline: From Ministerial Decision 73 to Ministerial Decision 131
Introduced Small Business Relief under Article 21 of the Corporate Tax Law, setting the AED 3 million revenue threshold for Tax Periods from 1 June 2023, originally through 31 December 2026.
Amends Clause (2) of Article (2) of MD 73 of 2023, extending the threshold's applicability to Tax Periods ending on or before 31 December 2029.
The amendment takes legal effect the day after it is published, per Article Two of MD 131 of 2026.
Who Still Qualifies for SBR?
The eligibility conditions under MD 73 of 2023 remain fully in force. A taxable person can elect for Small Business Relief where:
- They are a UAE resident person — juridical persons or eligible natural persons with UAE business income.
- Revenue in the relevant Tax Period, and every previous Tax Period, does not exceed AED 3 million.
- They are not a Qualifying Free Zone Person.
- They are not part of a Multinational Enterprise (MNE) Group with consolidated group revenue above AED 3.15 billion.
- The business has not been found to have artificially separated its activities to stay under the threshold — this is treated as a Corporate Tax abuse arrangement under Article 50.
Businesses that elect Small Business Relief are treated as having no taxable income for the period, but in exchange give up the ability to carry forward Tax Losses and disallowed Net Interest Expenditure for that period — a trade-off worth reviewing with an advisor each year, especially with three more years of eligibility now on the table.
What Eligible Businesses Should Do Now
Check the Revenue Test
Confirm current and prior-period revenue stays at or below AED 3 million.
Elect via EmaraTax
Small Business Relief is not automatic — it must be actively elected in each Corporate Tax return.
Review the Trade-Offs
Weigh the 0% tax benefit against suspended loss carry-forwards each Tax Period.
Plan Through 2029
Use the extended window to plan multi-year compliance and growth strategy.
Talk to HASCA
Get a compliance review to confirm eligibility and correct filing each year.
Small Business Relief 2029 — Frequently Asked Questions
Does Ministerial Decision No. 131 of 2026 change the AED 3 million threshold?
No. The revenue threshold under Ministerial Decision No. 73 of 2023 stays exactly the same — only the final qualifying Tax Period has been extended.
Which Tax Periods does Small Business Relief now cover?
Tax Periods commencing on or after 1 June 2023, continuing through Tax Periods ending on or before 31 December 2029.
Is Small Business Relief automatic?
No. Eligible businesses must actively elect for the relief within their Corporate Tax return on the EmaraTax portal each Tax Period.
Who is excluded from Small Business Relief?
Qualifying Free Zone Persons and members of Multinational Enterprise Groups with consolidated group revenue exceeding AED 3.15 billion cannot claim the relief.
When does Ministerial Decision No. 131 of 2026 take effect?
It takes effect the day following its official publication, as stated in Article Two of the Decision.
Not Sure If You Qualify for Small Business Relief?
Talk to Hussain Al Shemsi Chartered Accountants for a free eligibility review and Corporate Tax filing support — Sharjah's trusted audit and tax firm.
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