TaxSavvyAE

Revenue close to AED 3 million

My revenue this year may reach AED 3.1 million. What happens to Small Business Relief?

The situation

The relief needs revenue of AED 3 million or less in the current period and every earlier period. One period above it ends access for that period and all later ones.

The law

  • Ministerial Decision 73 of 2023 as amended by Ministerial Decision 131 of 2026: Small Business Relief for revenue up to AED 3 million, tax periods ending on or before 31 December 2029

What it means for you

Example: revenue of AED 3.1 million in 2026 means a standard return for 2026, and no SBR again even if revenue falls to AED 2 million in 2027. Under the standard rules, the first AED 375,000 of taxable income is at 0 percent and the rest at 9 percent. Do not split the business artificially to stay under the line; anti-abuse rules apply.

What to do

  1. Forecast year-end revenue now.
  2. If above AED 3 million, prepare for a standard return.
  3. Compute tax at 0 percent up to AED 375,000 and 9 percent above.
  4. Keep good books to claim all deductions.

We can do this for youCorporate Tax return with Small Business Relief for SMEs and freelancers with revenue up to AED 3 million: AED 2,250

Related