UAE Small Business Relief: 0% corporate tax, if you elect it in time
Small Business Relief lets a UAE business with revenue of AED 3 million or less pay no corporate tax for periods ending by 31 December 2026. It is not automatic: you elect it in the return on EmaraTax.
AED 99 per user per month. Xrero prepares the return figures; it is not a registered tax agent, so confirm your case with a UAE tax adviser or the FTA before filing.
AED 3M
revenue ceiling for the relief
31 Dec 2026
last period end it covers
9%
rate above AED 375K without it
AR / EN
the explanation and the return
The relief is real. Missing the election is the expensive part.
Most UAE small businesses assume 0% happens by itself. It does not.
Today, in most UAE companies
- Revenue tracked in a spreadsheet, crossing AED 3M noticed months later
- The return filed without the election, so 9% applies above AED 375K
- Nobody explained the rule to the owner, in either language
- Records rebuilt at the deadline from bank statements
With Xrero
- Revenue against the AED 3M ceiling on one screen, every day
- Warnings at AED 2.5M and at AED 3M, before the period closes
- The return figures prepared with the relief election marked
- Every entry posted during the year, so the return is a report, not a project
What Xrero does for the relief
The corporate tax module was built for UAE rules, this one included.
Eligibility tracker
Year-to-date revenue against the AED 3 million ceiling, with the tax period boundaries of your licence.
Threshold warnings
An early warning at AED 2.5 million and a clear flag when revenue passes AED 3 million and the relief no longer applies.
Return preparation
The corporate tax return figures in the shape EmaraTax expects, with the Small Business Relief election marked for you to confirm and file.
Books that support the return
Every invoice, bill and bank line posted during the year; revenue is a ledger figure, not an estimate.
What counts as revenue
Revenue recognised the way the relief measures it, so the comparison with AED 3 million is the right one.
Explained to the owner
The rule, the deadline and your own position explained in plain English or Arabic, on the screen and by our team.
Audit trail
Every figure on the return traces to posted entries, kept for the record-keeping period the law requires.
Beyond the relief
VAT 201, corporate tax at 9% for later periods, WPS payroll and invoicing in the same system, at AED 99 per user.
The rule, in plain terms
What the relief is, who gets it and how it is claimed.
What it is
Ministerial Decision 73 of 2023: a resident business with revenue of AED 3 million or less in the tax period, and in all earlier periods, is treated as having no taxable income.
Who qualifies
UAE resident persons, including companies and individuals in business, below the ceiling. Qualifying free zone persons and members of large multinational groups are excluded.
Until when
Tax periods ending on or before 31 December 2026. Later periods are taxed normally.
How to claim
Elect the relief in the corporate tax return on EmaraTax for each period. Without the election, the normal 9% applies above AED 375,000 of taxable income.
What you give up
In a relief period, tax losses cannot be carried forward and some deductions are not available. Compare before electing.
Records
Registration and returns are still required; the relief removes the tax, not the filing.
How the setup goes
We do the implementation ourselves, from the first call to the first month-end.
A 20-minute look
We plug in your last twelve months of revenue and show your position against the ceiling and the return shape.
We set up the books
Invoices, bills and bank feeds are loaded and reconciled so revenue is a ledger figure.
You file with confidence
At period end the return figures are ready with the election marked; you or your tax adviser file on EmaraTax.
Pricing, in the open
The same numbers are on our pricing page. No annual maintenance fee, no per-module surprises.
Monthly
AED 99
per user, per month - every module included
- Accounting, invoicing, VAT and corporate tax
- Inventory, purchasing, sales and CRM
- POS, HR and payroll with WPS
- Arabic and English, works on any phone, support from Dubai
One-time setup
AED 2,999
one-time, depending on the size of the business
- Data migration: customers, products, balances, staff
- Configuration for your VAT, banks and documents
- Training on your own numbers
- Live within two weeks, or the setup fee back
15-Day Trial Included. Prices in AED, excluding VAT. Full price list: xrero.com/pricing.
Built for UAE businesses
Xrero is built for trading companies, contractors, restaurants, shops, clinics and service firms across Dubai, Abu Dhabi, Sharjah and the northern emirates.
Questions we get asked
Straight answers, the same ones we give on the phone.
Who can use Small Business Relief?
A UAE resident business with revenue of AED 3 million or less in the current tax period and all earlier periods, other than qualifying free zone persons and members of large multinational groups.
Until when does it apply?
To tax periods ending on or before 31 December 2026. A period that ends after that date is taxed at the normal rates.
Is the relief automatic?
No. You must elect it in the corporate tax return on EmaraTax for each tax period. Without the election the normal rules apply.
What happens if revenue passes AED 3 million?
The relief no longer applies for that period and taxable income above AED 375,000 is taxed at 9%. Xrero warns at AED 2.5 million so you are not surprised.
Do I still have to register and file?
Yes. Corporate tax registration and the annual return are still required; the relief sets the tax to zero, it does not remove the filing.
Does Xrero file the return for me?
Xrero prepares the return figures with the election marked. You or your tax adviser file on EmaraTax; Xrero is not a registered tax agent.
Can I use losses from a relief period later?
No. Tax losses in a period where the relief is elected cannot be carried forward, which is why some businesses choose not to elect.
What does it cost?
AED 99 per user per month, and a one-time setup from AED 2,999 depending on the size of the business. No annual maintenance fee, 15-Day Trial Included, and the full price list is public on the pricing page.
Find out where you stand against AED 3 million
Twenty minutes on WhatsApp or a call. Bring twelve months of revenue and we show your position and the return shape.
Talk to us on WhatsAppPage updated 8 September 2026.