Is Corporate Tax mandatory for all UAE businesses?

Yes. Every UAE business that is a taxable person must register for Corporate Tax with the FTA and file a return, whatever its profit. Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%. Businesses with revenue of AED 3 million or less may elect Small Business Relief for eligible tax periods. Free zone companies must meet the Qualifying Free Zone Person conditions to benefit from the 0% rate.

How long does VAT registration take in the UAE?

VAT registration in the UAE typically takes 3 to 5 working days when all documents are correctly submitted to the Federal Tax Authority (FTA) via the EmaraTax portal. Marifah Tax Advisory completes VAT registrations within this timeframe and handles the entire process on your behalf.

What documents are needed for Corporate Tax registration in UAE?

For UAE Corporate Tax registration, you need: Trade Licence copy, Memorandum of Association (MOA), Emirates ID and passport copies of all owners/directors, company bank account details, and financial year start date. Our team guides you through the exact checklist and submits everything to the FTA on your behalf.

Can free zone companies avoid Corporate Tax in UAE?

Free zone companies are NOT automatically exempt from UAE Corporate Tax. To qualify for the 0% Qualifying Free Zone Person (QFZP) rate, your company must meet 5 specific conditions set by the FTA — including deriving income only from qualifying activities and maintaining adequate substance. We assess your eligibility and structure your compliance accordingly.

What happens if I file VAT returns late in UAE?

Late VAT return filing in UAE attracts an immediate penalty of AED 1,000 for the first offence, rising to AED 2,000 for repeated violations within 24 months. Additional penalties of 2% per month apply on any unpaid VAT. The FTA may also block your EmaraTax account. Marifah handles all filing deadlines proactively so you never face these penalties.

Corporate Tax5 min read

Small Business Relief UAE — Who Qualifies and How to Elect It

Small Business Relief lets eligible UAE businesses pay 0% Corporate Tax regardless of profit. Here is exactly who qualifies, how to elect it, and the AED 3 million revenue trap to avoid.

What is Small Business Relief?

Small Business Relief (SBR) is a UAE Corporate Tax relief under Ministerial Decision No. 73 of 2023 that allows eligible businesses to treat their taxable income as nil — effectively paying 0% Corporate Tax. It is designed to reduce the compliance burden on small businesses and startups that are still in their early growth phases. SBR must be actively elected in your Corporate Tax return — it is NOT applied automatically.

Who Qualifies for Small Business Relief?

Your revenue must not exceed AED 3 million in the relevant tax period

Your revenue must not have exceeded AED 3 million in any previous tax period from June 2023 onwards

You must be a UAE resident taxable person (juridical or natural)

The tax period must end on or before 31 December 2026

You must not be a member of a Multinational Enterprise group (global revenue above AED 3.15 billion)

You must not be a Qualifying Free Zone Person — QFZPs have their own 0% regime

The AED 3 Million Trap — Read Carefully

The AED 3 million threshold is cumulative and permanent. If your revenue exceeds AED 3 million in ANY tax period from 2023 onwards, you permanently lose SBR eligibility — even if your revenue drops back below AED 3 million in a future year. This means a business that had AED 3.2 million revenue in 2024 cannot elect SBR for 2025 even if its 2025 revenue was AED 1.5 million. Plan carefully if you are approaching this threshold.

What Does SBR Actually Give You?

When you elect Small Business Relief, your taxable income is treated as nil for that tax period. This means you pay zero Corporate Tax regardless of your actual profit. However, you still have ALL other Corporate Tax obligations: you must remain registered with the FTA, you must still file your Corporate Tax return by the 9-month deadline, and you must still maintain financial records for 7 years. SBR reduces your tax to zero — it does NOT remove your compliance obligations.

How to Elect Small Business Relief — Step by Step

Log in to EmaraTax at tax.gov.ae. Select your entity and open your Corporate Tax return for the relevant period. In the return, there is a section for Reliefs and Exemptions. Tick the Small Business Relief election checkbox. Confirm your revenue figure is below AED 3 million. The system will set your taxable income to nil automatically. Complete the rest of the return and file before your 9-month deadline.

SBR Checklist Before You Elect

Confirm revenue (NOT profit) is below AED 3 million for this period

Confirm revenue was below AED 3 million in all previous periods from June 2023

Confirm you are not a QFZP (free zone entities use the QFZP regime instead)

Confirm you are not part of an MNE group

Confirm your tax period ends on or before 31 December 2026

Prepare financial statements to evidence the revenue figure

File the Corporate Tax return within 9 months of your financial year-end

SBR Ends After 31 December 2026 — What Happens Next?

Small Business Relief is a transitional measure. For tax periods ending after 31 December 2026, SBR will no longer be available unless the UAE government extends it. If the relief is not extended, businesses that were relying on SBR will need to calculate and pay 9% on profits above AED 375,000 from their first eligible period. We recommend starting proper bookkeeping now so you are ready for full Corporate Tax compliance when SBR ends.

Are You Eligible for Small Business Relief?

Marifah Tax Advisory assesses your SBR eligibility, reviews your revenue figures, and files the election correctly on your behalf. Contact us for a free consultation — we will tell you in 15 minutes whether you qualify.

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