As part of the implementation of corporate tax in the UAE, an exemption for small businesses is provided through the Small Business Relief (SBR) program.
Eligibility Criteria
The relief applies to companies that meet the following conditions:
Revenue Threshold: Companies with annual revenue (turnover) of AED 3,000,000 or less can benefit from the SBR program.
Residency Requirement: The relief is only applicable to resident companies registered in the UAE.
Not applicable to: Branches or representative offices of international companies.
Key Features of the SBR Program
Corporate Tax Exemption:
If your annual revenue does not exceed AED 3,000,000, you are not required to pay corporate tax (9% of profits).
This helps support small and medium enterprises by reducing their tax burden.
Eligibility Criteria:
The company's revenue must remain below AED 3,000,000 during the relevant tax periods.
The relief is only applicable to resident companies registered in the UAE.
Does not apply to branches or representative offices of international companies.
SBR Validity Period:
The established revenue threshold of AED 3,000,000 is valid until the end of the 2026 tax period. Changes may be introduced after this period.
Exclusions:
The relief does not apply to businesses operating in free economic zones (if they already benefit from other tax incentives).
Also not applicable to large companies or industries related to oil, gas, and natural resource extraction.
Calculation Example
If your annual revenue is AED 2,500,000 and your profit is AED 500,000, you will not pay corporate tax as your revenue is below the threshold of AED 3,000,000.
However, if your revenue exceeds AED 3,000,000, for example, AED 3,500,000, then the 9% tax will apply only to your profit.
Registration for the program happens automatically when filing the corporate tax declaration, with a separate checkbox in the application. For clients in this category, we offer a discount on filing the declaration.