The AED 3 Million Lifeline

To support startups and small businesses, the UAE Ministry of Finance introduced the "Small Business Relief" provision.

The Rule

If a resident taxable person's revenue for the relevant tax period and all previous tax periods does not exceed AED 3,000,000, they can elect to be treated as having no taxable income.

This means you pay 0% Corporate Tax.

Important Conditions

- The relief applies to tax periods ending on or before December 31, 2026.

- It is based on Revenue (top-line sales), not Profit.

- You must still register for Corporate Tax and file a simplified tax return.

- Multinational Enterprises (MNEs) and Free Zone Persons claiming the Qualifying Income exemption cannot use this relief.

Tracking Revenue is Paramount

If your revenue hits AED 3,000,001, you lose the relief entirely and are subject to the standard 9% tax on profits over AED 375,000.

Ledgerly's dashboard tracks your gross revenue in real-time. We show you exactly how close you are to the AED 3M ceiling, ensuring you can make informed business decisions before year-end.