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UAE Corporate Tax: Registration Mandatory for Small Businesses Even with Losses

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Dubai January 03 2024:

FTA declares that it doesn’t mater whether a business is relatively new or has been making losses, they need to register irrespective of whether their annual profit is above or below the Dh 375,000 threshold.

However, if businesses don’t meet the Dh 375,000 profit level, eligible taxable persons (i.e. business owners) can elect for the ‘Small Business Relief’ on their tax return.To be eligible for the relief the criteria is as follows:

  • To be eligible for the relief, the business’s revenue must be below or equal to Dh 3 million for the latest and all previous tax periods.
  • Where the revenue exceeds Dh 3 million, the business will no longer be able to elect for the relief package, even if the revenue falls below the threshold in subsequent tax periods.

But the bottom-line remains the same – these businesses will still need to register for corporate tax.

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