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Corporate Tax Law Update

Ministerial Decision No. 73 of 2023 on Small Business Relief

The Ministerial Resolution on "Small Business Facilities" determines the mechanism for applying the provisions contained in Article (21) of the Corporate Tax Law, which stipulates that a taxable person shall be treated as a person who did not achieve any taxable income during the specified tax period during which his revenues did not exceed a certain limit. The Ministerial Decision on Small Business Relief stipulates the following:

  1. Taxable persons that are resident persons can claim Small Business Relief where their revenue is below AED3 million for each tax period.

  2. The AED3 million revenue threshold will apply to tax periods starting on or after 1 June 2023 till 31st of December 2026.

  3. Revenue can be determined based on the applicable accounting standards accepted in the UAE.

  4. Small Business Relief will not be available to Qualifying Free Zone Persons.

For more information on the following Ministerial Decision click here.

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