UAEs Ministry of Finance announced relief for small and micro businesses, startups, and individuals under the corporate tax

On Thursday, the UAE's Ministry of Finance declared relief from the corporate tax for startups, small and micro businesses, and individuals. This relief will take effect on June 1, 2023.

According to the Ministerial Decision No. 73 of 2023 on Small Business Relief, companies with sales of Dh3 million or less are eligible for the program, as are the requirements for electing the programme.

The ministerial decision on small business relief stipulates the following:

Residents who are taxable may qualify for small business relief if their combined income for the current tax period and the two prior tax periods was less than Dh3 million. This means that the small business relief will no longer be available once a taxable person's annual income surpasses Dh3 million in any tax period.

The Dh3-million revenue threshold will only continue to be applicable for subsequent tax periods that conclude before or on December 31, 2026, beginning with tax periods beginning on or after June 1, 2023.

Based on the relevant accounting standards recognised in the UAE, revenue can be calculated.