UAE Small Business Relief Extended to 2029: What Changed and What You Still Must File

The Ministry of Finance has extended Small Business Relief for corporate tax purposes by three years, and the Federal Tax Authority has separately reminded businesses that the relief does not excuse anyone from filing. Taken together those two announcements are the most useful news UAE small businesses have had this year, and also the easiest to misread. Here is what actually changed, who can claim it, and the deadline that has not moved.

What changed with Small Business Relief?

Ministerial Decision No. 131, announced in August 2026, replaces Clause 2 of Article 2 of Ministerial Decision No. 73 of 2023. The original decision made the relief available for tax periods starting on or after 1 June 2023 and ending on or before 31 December 2026. The new decision carries that same threshold forward to tax periods ending on or before 31 December 2029.

That is the whole change. No new threshold, no new mechanism, no new form. Eligible businesses simply get three more years of the simplified regime than they were previously promised.

Who can actually claim Small Business Relief?

This is where the headlines get thin, and where most of the questions we get come from. The AED 3 million figure is only one of several conditions.

• You must be a resident taxable person. Non-residents cannot claim the relief.
• Your revenue must not exceed AED 3 million in the current tax period and in every previous tax period. Once you cross the threshold in any period, the relief is gone for good.
• Qualifying Free Zone Persons cannot claim it. They already benefit from a 0 percent rate on qualifying income, so they sit outside this regime.
• Members of multinational enterprise groups with consolidated group revenue above AED 3.15 billion cannot claim it.
• The relief must be elected. It does not apply automatically just because your revenue is low.

Does Small Business Relief mean you do not have to file?

No, and the Federal Tax Authority issued a specific reminder about this on 3 August 2026. Eligibility for the relief does not remove the obligation to file a corporate tax return. Businesses claiming it must register for corporate tax, submit a simplified return, and keep records that prove they were actually under the threshold.

Corporate tax returns are due within nine months of the end of the tax period. For the very common case of a financial year that ended on 31 December 2025, that means the return and any tax due must be submitted and settled by 30 September 2026. Late filing brings penalties regardless of whether the tax owed is zero.

• Records of transactions during the tax period.
• Records of assets acquired and disposed of.
• Records of liabilities.
• Details of ownership interests at the end of the period.

What is ADGM's new broker classification framework?

Abu Dhabi Global Market's Registration Authority activated its Broker Classification Framework on 31 July 2026, following the initiative's introduction earlier in the year. Real estate brokers operating in ADGM are sorted into five tiers: General, Bronze, Silver, Gold and Platinum. Classification is based on sales and transaction activity, continuous professional development, and customer feedback.

This is a recognition and incentive framework rather than a penalty regime, and ADGM has said it will run workshops and engagement sessions with brokerages. If you operate a brokerage in ADGM, your tier will become a visible commercial signal to clients, which makes professional development and customer feedback worth tracking deliberately.

What is RAKEZ doing on worker welfare?

On 29 July 2026 Ras Al Khaimah Economic Zone announced a partnership with Control Risks Middle East Limited to develop a framework for labour accommodation and worker welfare standards across the zone. Control Risks will assess current practices, benchmark them against regional and international standards, engage stakeholders, and work with the RAKEZ Health, Safety and Environment department to produce a long-term roadmap.

No new obligations land on RAKEZ companies today. The output is intended as practical guidance for managing and improving accommodation standards. If you run a labour-intensive operation in RAKEZ with staff accommodation, this is worth watching, because guidance of this kind tends to become the benchmark inspectors use later.

What to do this month

1. Confirm your financial year end. If it was 31 December 2025, put 30 September 2026 in the calendar for your return and any payment.
2. Check whether you are a Qualifying Free Zone Person before assuming Small Business Relief applies to you.
3. If you are eligible, make the election when you file. The relief is not applied automatically.
4. Pull together your records now: transactions, assets acquired and disposed of, liabilities, and ownership interests at period end.
5. Model your revenue against the AED 3 million threshold for the next few years, since crossing it once ends your access to the relief permanently.
6. If you broker real estate in ADGM, review where you sit in the new classification tiers. If you operate in RAKEZ with staff accommodation, watch for the welfare framework guidance.