UAE Corporate Tax 2026: Small Business Survival Guide
The 9% corporate tax is here to stay. Learn about the Small Business Relief (SBR) and how to keep your Dubai startup tax-efficient.
Dubai's business landscape changed forever with the introduction of the 9% Corporate Tax. For 2026, the 'Grace Period' is officially over, and compliance is now the top priority for every Freezone and Mainland entity.
Small Business Relief (SBR)
The most important provision for 2026 is the Small Business Relief. If your revenue is below AED 3 Million, you can elect to be treated as having no taxable income for that period. However, you MUST still register and file a return. This is where many small businesses fail and incur penalties.
Freezone 'Qualifying' Status
If you operate in a Freezone, you can still enjoy a 0% rate, but only on 'Qualifying Income'. In 2026, the FTA has tightened the definition of what constitutes qualifying activity. Maintaining a proper 'Substance' in the UAE—office space, local employees, and local decision-making—is now mandatory to claim the exemption.
"In the UAE, the cost of compliance is low, but the price of non-compliance is extremely high."