The United Arab Emirates Ministry of Finance announced Ministerial Decision No. (131) to amend provisions of the Corporate Tax Law, extending small business relief until tax periods ending on or before December 31, 2029, according to official statements released in Abu Dhabi.
According to the Ministry of Finance, Ministerial Decision No. (131) amends the corporate tax framework to support small businesses and startups, improve the business environment, and help entrepreneurs grow and expand. The decision aims to cement the nation’s standing as a leading global investment destination while confirming a commitment to a competitive tax system that supports sustainable economic growth, encourages tax compliance, and aligns with global best practices.
Tax Limits and Eligibility for Small Business Relief
Under the updated decision, the revenue threshold outlined in Ministerial Decision No. (73) of 2023 remains applicable for tax periods starting on or after June 1, 2023. This continuity covers subsequent tax periods ending on or before December 31, 2029. Taxable persons whose revenues do not exceed the 3 million dirham threshold qualify for simplified corporate tax compliance requirements, subject to conditions and controls set out in relevant legislation.
Did You Know? Small business relief allows eligible taxable persons with revenues not exceeding 3 million dirhams to access simplified compliance requirements for corporate tax purposes.
Economic Context and Long-Term Strategy
Frequently Asked Questions
What does Ministerial Decision No. (131) change?
The decision amends provisions of the corporate tax framework to extend the small business relief period until tax periods ending on or before December 31, 2029, according to the Ministry of Finance.
What is the revenue threshold for small business relief?
Taxable persons with revenues not exceeding 3 million dirhams qualify for simplified corporate tax compliance requirements under the terms of the decision.
Which tax periods are covered by the continued threshold?
The threshold outlined in Ministerial Decision No. (73) of 2023 continues to apply to tax periods starting on or after June 1, 2023, and running through tax periods ending on or before December 31, 2029.
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