UAE Tax Relief Measures for Small Businesses
The United Arab Emirates maintains its position as a premier business destination through a sophisticated yet accessible tax framework. Following the implementation of Corporate Tax and Value Added Tax (VAT), the UAE has established a balanced approach that ensures regulatory compliance while providing substantial relief mechanisms for small enterprises. This guide examines the tax relief measures available to small businesses under both Corporate Tax and VAT regimes, enabling entrepreneurs to optimize their tax strategies and maintain operational efficiency. Corporate Tax Relief for Small Businesses The UAE's corporate tax landscape underwent a fundamental transformation with the Ministry of Finance's introduction of Corporate Tax on June 1, 2023. This direct tax applies to business profits and income at a rate of 9% for entities with taxable income exceeding AED 375,000. Businesses below this threshold benefit from a 0% tax rate, while additional relief measures support qua...