If your business has less than AED 3 million in turnover during the financial year, you can choose to apply for Small Business Relief under UAE Corporate Tax. That means you won’t have to pay any tax—even if your profit is above AED 375,000. For example, if your revenue is AED 2.8 million and your net profit is AED 600,000, you still pay zero tax if you’ve opted for this relief. It’s available on a year-by-year basis until 2026. But before filing, make sure you’ve reconciled your revenue reported under VAT with what you plan to declare in your corporate tax return. Also, prepare your financials properly and cross-check your debtor balances—opening, receipts from sales, and closing—to confirm your reported revenue is accurate.

Entities having loss should not opt for SBR, as they would not able to carry forward their losses.

Choose your reporting wisely.