Abu dhabi: The Ministry of Finance has announced the issuance of Ministerial Decision No. (131) amending certain provisions of the Ministerial Decision on the Taxation of Corporations and Businesses. The amendment extends the period during which Small Business Relief may be claimed to tax periods ending on or before 31st December 2029.

According to Emirates News Agency, the decision is part of the ministry's ongoing efforts to support small businesses and start-ups, strengthen the business environment, and enable entrepreneurs to grow and expand their businesses. This move aims to reinforce the UAE's position as a leading global destination for investment.

The amendment also reaffirms the UAE's commitment to developing a competitive tax system that supports sustainable economic development, promotes compliance, and aligns with international best practices. Under the decision, the threshold prescribed under Ministerial Decision No. (73) of 2023 will continue to apply to tax periods commencing on or after 1st June 2023 and shall apply to subsequent tax periods ending on or before 31st December 2029.

Small Business Relief enables Taxable Persons with annual revenue not exceeding AED3 million (the threshold) to benefit from simplified Corporate Tax compliance requirements, subject to the conditions and requirements set out in the relevant legislation.