Ministerial Decision No. 131 of 2026: Small Business Relief Now Runs to 31 December 2029

Ministerial Decision No. 131 of 2026 extends Small Business Relief (SBR) to tax periods ending by 31 December 2029. The Ministry of Finance announced the decision on 7 August 2026. The AED 3 million revenue threshold and the conditions for claiming the relief have not changed.

What Ministerial Decision No. 131 of 2026 changes

Ministerial Decision No. 73 of 2023 originally limited the relief to tax periods ending by 31 December 2026. Ministerial Decision No. 131 of 2026 moves that end date. The AED 3 million threshold still applies to tax periods starting on or after 1 June 2023, and now covers later tax periods ending by 31 December 2029.

For a business with a calendar financial year, that adds the 2027, 2028 and 2029 tax periods. Unless it is extended again, the relief ends with tax periods ending in 2029.

What stays the same

• Revenue in each tax period, current and past, must be AED 3 million or less. Once revenue goes over the threshold in any period, the relief is unavailable for that period and every later one.
• Members of multinational groups with consolidated revenue of AED 3.15 billion or more cannot claim it, and neither can Qualifying Free Zone Persons.
• The relief is not automatic. It has to be elected in the corporate tax return, and corporate tax registration, annual filing and record-keeping still apply.
• A tax loss from a period in which SBR is elected cannot be carried forward.

What businesses should do now

• Check revenue for every tax period that started on or after 1 June 2023 against the AED 3 million threshold.
• In a loss-making year, model whether keeping the tax loss is worth more than electing the relief.
• If revenue is close to AED 3 million, plan for the year it crosses, when a full corporate tax computation applies.
• Keep proper accounting records, because a nil liability still needs a return.

How nAlyze helps

nAlyze confirms eligibility, models whether electing the relief is the better outcome for each tax period, and handles the election and filing. For the full conditions, read our guide to who qualifies for Small Business Relief. Explore our corporate tax services or see if you’re a fit.

Source: Ministry of Finance announcement (WAM, via Khaleej Times)