The UAE’s Federal Tax Authority (FTA) has reminded businesses eligible for Small Business Relief that simplified tax treatment does not remove their obligations under the UAE Corporate Tax Law.
As businesses prepare to file Corporate Tax returns for their first full tax periods, the FTA is urging eligible taxpayers to prepare early, maintain accurate financial records and submit their returns within the required timeframe.
Businesses with a financial year ending on 31 December 2025 must file their Corporate Tax returns and settle any Corporate Tax due by 30 September 2026.
Small Business Relief Does Not Remove Filing Requirements
The FTA clarified that businesses benefiting from Small Business Relief must still comply with Corporate Tax requirements. This includes registering for Corporate Tax, filing a simplified tax return and maintaining sufficient records to demonstrate eligibility.
Businesses seeking the relief must also formally elect to apply for Small Business Relief through their Corporate Tax return. While the simplified return requires less information, completing the filing process remains mandatory.
In general, taxable persons and exempt persons required to register must submit their Corporate Tax returns or annual declarations and settle any tax due within nine months from the end of the relevant tax period or financial year.
AED 3 Million Revenue Threshold
Under the Small Business Relief framework, an eligible resident person may be treated as having no taxable income for Corporate Tax purposes if revenue does not exceed AED 3 million during the relevant tax period and all previous applicable tax periods.
Businesses claiming the relief must maintain adequate evidence demonstrating that their revenue remained within the required threshold.
The FTA highlighted the importance of keeping proper financial and business records, including transaction records, asset acquisitions and disposals, liabilities and ownership interests held at the end of the relevant tax period.
Digital Corporate Tax Services Available
Abdulaziz Mohammed Al Mulla, Director General of the FTA, reaffirmed the authority’s commitment to making tax compliance more efficient and accessible for businesses across the UAE.
Corporate Tax registration, return filing and payment services are available 24/7 through the EmaraTax digital platform. Businesses can complete the procedures directly or seek assistance from FTA-approved tax agents.
The FTA also encouraged businesses to review the Corporate Tax Law, implementing decisions and official guidance to ensure they understand their obligations and avoid penalties associated with late filing or non-compliance.
Source: Gulf Business, https://gulfbusiness.com/en/2026/uae/fta-clarifies-small-business-relief-rules-ahead-of-tax-return-deadline-in-uae/
