The application period regarding a UAE Small Business Relief 2029 (SBR) under corporate tax has been officially extended by the UAE government.

Ministerial Decision No. 131 of 2026 amends certain provisions from Ministerial Decision No. 73 of 2023 and permitted SBR threshold as applicable to continue regarding the qualifying Tax Periods that ends on or before 31st December 2029.

This decision was delivered by the UAE Minister of State for Financial Affairs on 29th of July 2026 that became effective on the Day following its publication.

Regarding small businesses and entrepreneurs functioning in the UAE, such extensions offer more time for planning corporate tax positions with the applicable Small Business Relief framework.

Follow this guide to understand UAE Small Business Relief 2029 comprising eligibility, threshold, examples and compliance updates.

What changed under Ministerial Decision No. 131 of 2026?

The key change has been made to Clause (2) of Article (2) of Ministerial Decision No. 73 of 2023.

The provisional amendment has confirmed that the applicable threshold will carry Tax Period consistency for:

• Commencement on or after 1st June 2023
• End on or before 31st December 2029

Previously, the threshold applied until 31st December 2026.

Now the extension has been made up to 31st December 2029 under Ministerial Decision No. 131 of 2026. This indicates that the UAE has provided an extension where the Small Business Relief thresholds can be applied consistently.

AED 3M revenue threshold

This extension has not brought a new threshold rather it has extended the period during which the existing SBR threshold becomes applicable.

For businesses expecting eligibility the significant figure is consistent at the AED 3 million Revenue threshold that was established as per the Small Business Relief framework.

It is then necessary for businesses to properly differentiate between threshold amount and the threshold applicable period.

New 31 Dec 2029 end date

The significant development for UAE businesses is the UAE Small Business Relief 2029.

Within the amended provision, the threshold is consistently applicable to subsequent tax periods ending on or before 31st December 2029.

With it, the qualifying businesses get additional time for considering a Small Business Relief to manage corporate tax obligations.

For startups and growing businesses, the extension can provide greater certainty for budget preparation, tax planning and financial forecast strategies through 2029.

Who can claim for UAE Small Business Relief 2029?

2029 extension provides eligible businesses with more time with applicable existing SBR rules.

Key factors	What businesses need to know about UAE SBR 2029
UAE Small Business Relief 2029 Eligibility	Eligibility criteria is consistent.
UAE Small Business Relief 2029 extension	31st December 2029
Before claiming SBR	Necessary for businesses to verify status and assure their applicable conditions.
2026 Decisions	Ministerial Decision No. 131 of 2026 amending existing SBR decisions instead of replacing the framework.

Eligible tax periods for UAE Small Business Relief 2029

Tax period	SBR threshold application
Starting 1st June 2023 onwards	Threshold applies
Ending on or before 31st December 2029	Threshold applies
After 31st December 2029	Ineligible

It is necessary for businesses to assess their individual tax period instead of treating 2029 as a general tax exemption.

How the relief will work under UAE Small Business Relief 2029?

The 2026 decision does not rewrite or change the entire UAE Small Business Relief 2029 framework.

Relief area	What does it stand for?
Legal framework	SBR functions under UAE Corporate Tax framework
Existing SBR rules	Ministerial Decision No. 73 of 2023 continuing to offer a broader framework.
2026 amendment	Extension of application threshold through Decision No. 131 of 2026.
Other requirements	Applicable compliance and existing eligibility criteria.

Uploaded decisions particularly amends existing SBR provision with transformation of applicable end date to 31st December 2029.

Businesses that do not qualify UAE Small Business Relief 2029 Threshold

The 2029 extension does not indicate that all the small businesses qualify automatically.

Important aspects of UAE Small Business Relief 2029	What businesses should do
Consistent conditions	SBR review requirement under Decision No. 73 of 2023.
2029 as no automatic exemption	Eligibility checking for relevant tax periods.
Limited amendment	Understanding 2026 decision as an extension of the threshold period.
Prior to SBR election	Confirming applicable requirements.

The 2026 decision provides a threshold application extension and does not state broader eligibility conditions.

Examples of UAE Small Business Relief 2029

Extended timeline provides qualifying businesses with more tax periods for SBR threshold consideration.

Example	What does it mean?
A business with tax period ending in 2028	As the tax period falls under an extended period then the qualifying business can assess the applicable SBR threshold.
Business with tax period ending in 2029	The qualifying business can also assess SBR threshold as decisions are extended to the tax period ending on or before 31st December 2029.

Compliance and record-keeping for UAE Small Business Relief 2029

Extended relief period does not indicate relaxing tax records for the business.

What to monitor	Why it matters
Revenue	It reflects whether the business is within the applicable threshold or not.
Tax period	Assurance of tax period falling within SBR timeline.
Financial records	Assisting accurate tax reporting as well as eligibility assessment.
SBR conditions	Meeting applicable requirements for the business.
Corporate tax compliance	Other applicable tax obligations are not removed due to extension.

What UAE businesses should do for UAE Small Business Relief 2029?

Regarding UAE Small Business Relief 2029, it is necessary for businesses to:

• Review the tax period.
• Revenue monitoring against AED 3 million threshold.
• Check SBR eligibility conditions.
• Account record accuracy maintenance.
• Planning Corporate Tax Obligation through 2029.
• Reviewing latest UAE tax regulation prior to filing.

Conclusion

UAE Small Business Relief 2029 extension offers an important additional period for eligible businesses considering relief under the Corporate Tax framework.

The 2029 SBR extension can create valuable Tax planning opportunities for eligible UAE businesses.

If you also question your qualification and extended threshold regarding corporate tax position —

Connect with BSC and get a professional assessment for your eligibility and planning ahead.

Frequently Asked Questions (FAQs)