UAE Extends Corporate Tax Relief for Small Businesses Through 2029 and Raises the Revenue Threshold

By Kekeletso Nkele, small.news Assistant

(small.news) — The UAE Ministry of Finance announced on August 7 that small businesses with annual revenue of up to Dh3 million (approximately $816,880) can continue to claim corporate tax relief until December 31, 2029, reports The National News.

The previous revenue ceiling for relief eligibility was Dh375,000, meaning the threshold has been raised eightfold. Together, the extension and the expanded ceiling significantly widen the pool of businesses that qualify.

Under the relief scheme, eligible businesses are treated as having no taxable income during the relief period, which reduces both their tax liability and the compliance burden associated with filing.

What Business Owners Said

The article in The National gathered responses from business owners and advisers who welcomed the announcement. However, the piece does not include dissenting views or independent analysis of the policy’s broader fiscal implications.

Marie-Claire Accordino, founder of The Accounts Dept, a bookkeeping firm that works with approximately 20 small business clients, said the measure would benefit consulting firms, professional service providers, and technology startups that typically spend years building revenue while incurring high initial costs. She said the relief provides businesses with additional liquidity during the early stages of their life cycle, which can be redirected toward hiring, marketing, or operational costs.

Dr. Daamini Shrivastav, a Dubai-based emergency doctor who co-founded an emergency preparedness kit business called the Trooper Box in 2025, said the extension would save her business approximately Dh25,000 per year. She said the timing is significant given that rising operational costs and geopolitical instability in the region since the outbreak of the Iran conflict in late February 2026 had created unpredictable conditions for planning. She said the three-year window allows the business to make more confident decisions on inventory and logistics.

An Adviser’s View on Compliance

Sheetal Soni, founding partner of financial advisory firm MICS, said the relief reduces administrative obligations for qualifying businesses — noting that eligible companies will not be required to prepare full financial statements, conduct audits, or complete detailed tax filings until their revenue exceeds the threshold.

Soni also connected the announcement to the UAE’s broader strategy of positioning itself as an attractive environment for business formation and foreign investment, citing the influx of family offices and international capital into the country in recent years. Those characterizations reflect his perspective as an adviser operating in the UAE market rather than an independent assessment.

Context: A Broader Pattern of Relief

The corporate tax extension follows a series of other relief measures introduced by UAE authorities since the outbreak of the Iran conflict in late February 2026. Sharjah introduced an economic relief package for businesses in June, and Dubai approved a Dh1.5 billion relief package in May that included the suspension of hotel and restaurant tax. The corporate tax extension fits within that broader pattern of government responses to the economic disruption caused by regional instability.

The Ministry of Finance has not published details on how many businesses are expected to benefit from the expanded threshold or the estimated fiscal cost of the extension.