Answer:
Small Business Relief may be claimed by any UAE resident juridical person or individual whose revenue does not exceed AED 3,000,000 in a Tax Period and in previous Tax Periods, provided that additional conditions are also met.
(Article 21 of Federal Decree-Law No. 47 of 2022; Ministerial Decision No. 73 of 2023)
To claim Small Business Relief, the Taxable Person must:
- Be a Resident Person.
- Have revenue not exceeding AED 3,000,000 for the relevant Tax Period and all previous periods starting on or after 1 June 2023 and ending before or on 31 December 2026.
- Not be a Qualifying Free Zone Person or a Constituent Company of a Multinational Enterprises Group.
What does the relief mean?
If the relief is elected, the person will be treated as having no Taxable Income for that Tax Period. As a result:
- No Corporate Tax will be payable.
- The following provisions will not apply for that period: exempt income, reliefs, deductions, tax loss relief, and Article 55 compliance obligations.
Limitations:
- Tax losses and net interest expense incurred during a relief-claimed period cannot be carried forward...