Small Business Relief
- Where the person have Artificially separated business to claim relief, this would be considered as Corporate Tax advantage.
- Separation should be for a valid & Commercial reason.
- The following shall not apply for any person claiming small business relief.
- Exempt Income
- Deductions
- Tax Loss
- Transfer Pricing documentation.
- Conditions for claiming Small Business Relief
- Taxable Person’s Revenue for the relevant & previous Tax Periods shall be AED 3 MN for each Tax period.
- Resident Persons must not be a Qualifying Free Zone Person or Constituent Company of MEG.
- Revenue Threshold for Tax Periods commencing on or after 1/06/2023 to end before or on 31/12/2026
- Business electing for small business relief cannot carry forward tax losses/Net Interest Expenditure.
- Losses & interest can only be carried forward in Tax Year in which election for relief not made.
