Global Daily Tax News, UAE Extends Corporate Tax Exemption For Small Businesses, (Aug 13, 2026)

The United Arab Emirates has announced that the corporate tax exemption for small entities will be extended, covering tax periods ending on or before December 31, 2029.

Under the relief, resident businesses with annual revenues of not more than AED3m can elect for their taxable income to not be taxed under the UAE's regime.

The decision to extend the relief was announced in newly issued Ministerial Decision No. 131.

Meanwhile, the tax agency has highlighted the approaching September 30, 2026, deadline for the filing of corporate income tax returns, for those whose fiscal year aligns with the calendar year, along with payment.

The tax agency noted that eligible resident persons wishing to benefit from the small business facilities must elect into the regime each year when submitting the tax return for the relevant tax period. Eligibility to benefit from the small business facilities will not waive the requirement to submit tax returns, but these entities may submit a simplified tax return, reducing the amount of information that must be provided, it said.