UAE Corporate Tax Filing for Small Business in 2025 🇦🇪 | Small Business Relief Explained

5/31/20252 min read

🏢 UAE Corporate Tax Filing for Small Business in 2025 🇦🇪 | Small Business Relief Explained

As the UAE implements corporate tax regulations starting from 2023, many small business owners are preparing for their first full year of filing in 2025. Whether you’re a startup, freelancer, or micro business owner, it’s important to understand how corporate tax applies to you and how you can benefit from the Small Business Relief initiative.

In this guide, we’ll walk you through everything you need to know about filing corporate tax in the UAE as a small business, and how to take advantage of tax relief measures in 2025.

📌 What is UAE Corporate Tax?

As of June 1, 2023, the UAE has implemented a 9% federal corporate tax on taxable profits exceeding AED 375,000. This is part of the country's strategy to align with global tax standards and diversify national revenue sources.

👨‍💼 Who Needs to File Corporate Tax?

All UAE-based businesses—including small businesses, freelancers, and Free Zone entities—must assess whether they fall under the corporate tax regime. Even if your profit is below the taxable threshold, you are generally required to register and file your tax return.

📉 What is Small Business Relief?

The Small Business Relief (SBR) is a special provision introduced under UAE Corporate Tax Law to ease the burden on small businesses.

Eligibility Criteria (2025):

Revenue threshold: Less than AED 3 million in revenue per tax period.
Applies to financial years starting on or after June 1, 2023, and until December 31, 2026.
Must be a resident business in the UAE (excluding certain multinational corporations and regulated financial entities).

If eligible, your taxable income will be treated as “0”, meaning no corporate tax will be payable, though filing is still required.

📝 Step-by-Step: How to File Corporate Tax in UAE (2025)

Here’s a simplified process:

1. Register for Corporate Tax

Use the EmaraTax portal (run by the UAE Federal Tax Authority).
Submit your trade license, Emirates ID, and ownership documents.

2. Check Eligibility for Small Business Relief

Verify your revenue is under AED 3 million.
Ensure you’re not part of a multinational or qualifying Free Zone group.

3. Prepare Financial Statements

Prepare audited or management-reviewed financials.
Declare total revenue and net profit/loss.

4. File Tax Return

Log in to EmaraTax and complete your return.
Tick the box for Small Business Relief if eligible.
Submit before the deadline (typically 9 months after the end of your financial year).

💬 Final Thoughts

The UAE Corporate Tax regime doesn’t have to be overwhelming—especially for small businesses that qualify for Small Business Relief. With careful planning and timely filing, you can remain compliant without paying a dirham in tax if your revenue is below AED 3 million.

👉 Need help filing your UAE corporate tax? Contact us today for a free consultation and step-by-step guidance.