SBR for an individual in business
I am a sole proprietor with AED 1.4 million revenue. Can I use Small Business Relief?
The situation
Yes. Individuals whose business turnover passes AED 1 million must register, and as resident persons they can elect Small Business Relief if revenue is within AED 3 million.
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
- Cabinet Decision 49 of 2023: Individuals taxable above AED 1 million business turnover
What it means for you
Individuals use the calendar year as the tax period. Example: AED 1.4 million turnover in 2026 means registering by 31 March 2027, filing by 30 September 2027 and electing SBR, so no tax for 2026. Keep business and personal accounts apart to make records clear.
What to do
- Register by 31 March after the year.
- Prepare simple business accounts.
- Elect SBR in the return.
- Keep business records separate from personal.
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