Revenue definition for the AED 3 million test
Does the AED 3 million include VAT and one-off asset sales?
The situation
Revenue is the gross amount from the business under the accounting standards you apply. VAT collected for the government is not revenue.
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
Take revenue from the income statement before deductions. Example: invoices of AED 3,150,000 including AED 150,000 VAT means revenue of AED 3,000,000, which is within the limit. A gain on selling equipment may count depending on how it is shown in the accounts, so check the presentation with your accountant.
What to do
- Pull revenue from the income statement.
- Remove VAT collected.
- Check how asset sales are presented.
- Record the calculation in your file.
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