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UAE Announces Corporate Tax Relief for Small Businesses and Startups
Dubai April 06, 2023:
The UAE’s Ministry of Finance on April 6, 2023 announced relief for small and micro businesses, startups and freelancers under the corporate tax, which will come into effect from June 1, 2023.
The Ministerial Decision No. 73 of 2023 specifies that businesses and individuals with revenues of Dh 3 million or less can benefit from Small Business Relief initiative as it intends to support start-ups and other small businesses by reducing their corporate tax burden and compliance costs.
The UAE government last year announced that it would levy a nine percent tax on the profits of companies exceeding Dh 375,000. The Ministry said the Dh 3 million revenue threshold will apply to tax periods starting on or after June 1, 2023 and will only continue to apply to subsequent tax periods that end before or on December 31, 2026.
View the Ministerial Decision No. 73 of 2023 “Small Business Relief for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses”