Small Business Relief under Corporate Tax

Small Business Relief under Corporate Tax in UAE is provided to small Businesses to ease their implementation of the Corporate Tax regime. Small Business Relief (SBR) reduces the compliance obligations faced by small businesses in the early stages of the Corporate Tax in UAE, primarily by alleviating the burden of having to calculate and pay Corporate Tax.

Who is eligible for Small Business Relief (SBR) in UAE?

Any UAE resident taxable person with revenues below the Dh3 million threshold and meeting other conditions can claim the Small Business Relief by electing not to derive any “taxable income” during the relevant tax period.  

For the calculation of the Revenue, the accounting standards applicable in the UAE are accepted, such as Gen­er­ally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Following are the condition in order to elect for small business relief under corporate tax in UAE:

• Three million revenue threshold
• Not a qualifying free zone person
• Not a member of big Multinational Enterprises Group (MNE)

Overview of Small Business Relief under Corporate Tax in UAE

Requirement for corporate tax return for Small Businesses in UAE

It will be necessary for businesses to select Small Business Relief on their tax return. Thus, being eligible for Small Business Relief has no bearing on the need to file tax returns.

However, companies who choose the Small Business Relief option will have access to a streamlined tax return, which will cut down on the quantity of data they must submit and the time it takes to finish the return.

Corporate Tax Consultancy in UAE

Being a reputable corporate tax consultants in the UAE , our experts help your business in navigating the complex tax regulations by providing valuable advice to businesses.  Unlock the full potential of your business with the expertise of our best corporate tax consultants in the UAE. At Xact Auditing, we redefine excellence in tax consultancy, offering a comprehensive suite of services tailored to meet the unique needs of your business.

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