UAE offers relief to SME’s and Freelancers in the New Upcoming Corporate Tax

UAE offers relief to SME’s and Freelancers in the New Upcoming Corporate Tax

The New recent announcement by UAE government offering flexibility to SME’s by offering a tax ceiling of 3 million is big relief and comes as a bonus to small and medium enterprises specially at times when cost of funds and operations are running high.


Setting the revenue ceiling is not only a welcome news but also its good to know that the offered relief will remain effective until 31 dec 2026.


So any business which falls below a total annual revenue of 3 million AED in any financial year will be exempted from paying the new 9% corporate tax.


But with this comes the condition to businesses who wish to be eligible for this relief need to comply fully with GAAR (General Anti Avoidance Rules). If a business fails to reach required score, they can run into risks.

GAAR relates to actions taken by businesses purely to offset their real tax obligations. In these cases, it becomes more about tax avoidance.

UAE Corporate tax which is being implemented from June 1, 2023 already offers a relief for small businesses to be exempted if they earn a net income of below AED 375,000 in a financial year.

Disclaimer: Above article has been comprised from various reliable sources but we advice users to seek professional advice from a lawyer or an tax expert. Neither the author nor website owners take any responsibility for validity of the information shared above.

Location: Dubai - United Arab Emirates

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