FTA clarifies small business relief rules ahead of tax return deadline in UAE
The latest guidance comes as many businesses prepare to file their corporate tax returns for the first full tax periods under the UAE’s Corporate Tax Law

04 August, 2026

TT
16
As the UAE’s corporate tax regime continues to mature, the Federal Tax Authority (FTA) has issued a fresh reminder to businesses eligible for Small Business Relief, stressing that simplified tax treatment does not exempt taxpayers from meeting their legal obligations.
With key filing deadlines approaching, the authority is urging eligible businesses to prepare well in advance by gathering the required documentation, maintaining accurate financial records and submitting their corporate tax returns within the stipulated timeframe.
Read more: UAE Corporate Tax penalty waiver benefits 68,600 businesses
The latest guidance comes as many businesses prepare to file their corporate tax returns for the first full tax periods under the UAE’s Corporate Tax Law. While the Small Business Relief framework is designed to ease the compliance burden for qualifying businesses, the FTA emphasised that taxpayers must continue to register for Corporate Tax, submit simplified tax returns and retain sufficient records to demonstrate their eligibility for the relief.
According to the authority, businesses with a financial year ending on December 31, 2025, must file their Corporate Tax returns and settle any Corporate Tax due by September 30, 2026.
Relief does not remove filing obligations
The FTA clarified that taxpayers eligible for the Small Business Relief remain subject to all compliance requirements under the Corporate Tax Law for every applicable tax period.
These include registering for Corporate Tax, filing simplified tax returns and maintaining records that enable the Authority to verify revenue, taxable income and eligibility for the relief.
The authority also reminded taxable persons, as well as exempt persons required to register, that Corporate Tax returns or annual declarations and any tax due must be submitted within nine months of the end of their respective tax period or financial year.
It said early preparation remains essential to ensuring smooth compliance and avoiding penalties associated with late submissions or other breaches of tax regulations.
The FTA added that businesses seeking to benefit from the Small Business Relief must formally elect to apply for the relief through their Corporate Tax returns.
Although eligible businesses can submit a simplified return requiring less information, they are still legally required to complete the filing process.
Revenue threshold remains key eligibility criterion
Explaining the relief framework, the Authority said an eligible resident person is treated as having earned no taxable income for Corporate Tax purposes if its revenue does not exceed Dhs3m during the relevant tax period and all previous tax periods.
However, businesses claiming the relief must be able to provide evidence demonstrating that their revenue has remained below the prescribed threshold throughout the applicable periods.
The FTA noted that maintaining proper records remains a critical part of the compliance process. Depending on the nature of a business’s activities, supporting documentation may vary, but businesses should retain records of transactions undertaken during the tax period, details of asset acquisitions and disposals, liabilities and ownership interests held at the end of the tax period.
Digital platform streamlines compliance
Abdulaziz Mohammed Al Mulla, director general of the FTA, said the authority remains committed to enhancing its services in line with international best practices while making compliance easier for businesses operating across the UAE.
“Our commitment is to continuously enhance our services in accordance with international best practices, providing comprehensive support to the business community and facilitating compliance with tax legislation, including the Corporate Tax Law and its implementing procedures, with accuracy, efficiency and ease,” Al Mulla said.
He added that Corporate Tax registration, tax return submission and payment services are available around the clock through the EmaraTax digital tax services platform, allowing businesses to complete the process directly or seek support from FTA-approved tax agents listed on the Authority’s website.
The authority also encouraged businesses to familiarise themselves with the Corporate Tax Law, implementing decisions and official guidance available on its website to ensure full compliance with the regulations.



















