Small Business Relief – Under UAE CT Laws Small Business Relief is provided to small Businesses resident for Corporate Tax purposes in the UAE to ease their implementation of the Corporate Tax regime. Small Business Relief reduces the compliance obligations faced by small Businesses in the early stages of the Corporate Tax regime, primarily by alleviating the burden of having to calculate and pay Corporate Tax. Small Business Relief – Who is eligible under UAE CT Laws A Taxable Person (being a Resident Taxable Person - either a Natural Person or a Juridical Person) with Revenue below or equal to AED 3,000,000 in a relevant Tax Period and all previous Tax Periods that end on or before 31 December 2026 can elect to be treated as having no Taxable Income in that period, and will not be obliged to calculate its Taxable Income or complete a full Tax Return. Small Business Relief – Main benefit of relief under UAE CT Laws Eligible Taxable Persons that have elected for the Small Business Relief will benefit from both: administrative relief: they will not be required to calculate their Taxable Income and will benefit from simplified tax return filing and record keeping requirements, including the ability to prepare their Financial Statements using the cash basis of accounting; and tax relief: they are not required to pay any Corporate Tax on income earned in the Tax Period. Eligible Taxable Persons can elect for Small Business Relief in their Tax Return. Once the election has been made, they will be able to complete a simplified Tax Return and benefit from the relief. Briefly, Business is: required to register for Corporate Tax required to file a simplified Tax Return not required to file a full Tax Return not required to calculate Taxable Income not liable to pay Corporate Tax to pay. Other important aspects of Small Business Relief:  Business will be, subject to meeting necessary conditions: cannot accrue and utilise Tax Losses for the relevant Tax Period Cannot accrue and utilise Excess Interest Expenditure for the relevant Tax Period Can carry forward Tax Losses and Excess Interest Expenditure from previous Tax Periods Cannot apply reliefs for transfers within a Qualifying Group or for Business restructuring transactions Are not required to comply with transfer pricing documentation requirements Must comply with the Arm's Length Principle Small Business Relief – Who is not eligible for Small Business Relief? Small Business Relief will be available to UAE Resident Persons whose Revenue does not exceed AED 3,000,000 for the relevant Tax Period and all previous Tax Periods. However, there are two key exceptions to this criterion: Where the business is a member of a Multinational Enterprise Group (MNE); Where the business is a Qualifying Free Zone Person. Members of an MNE Small Business Relief will not be available to a business that is a constituent company of an MNE. MNEs are groups of companies that operate in more than one country and that have a total consolidated group revenue of more than…