UAE: Small business tax relief
The Ministry of Finance issued Ministerial Decision No. 73 of 2023 on small business tax relief
The Ministry of Finance issued Ministerial Decision No. 73 on small business tax relief
The Ministry of Finance issued Ministerial Decision No. 73 of 2023 on small business tax relief following Article 21 of the Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses.
Highlights
- Covered persons: UAE resident juridical persons or individuals with revenue of less than AED 3 million (approximately USD 817,000) in the current and previous tax periods
- Non-covered persons: Qualifying free zone persons and members of multinational enterprises groups (MNE groups) defined in Cabinet Decision No. 44 of 2020 (country-by-country (CbC) reporting regulation)
- What is the amount of relief? Tax exemption for any financial year of the business starting on or after 1 June 2023 and ending on or before 31 December 2026
- How do taxpayers obtain the relief? By making an election to the federal tax authority
Read an April 2023 report prepared by the KPMG member firm in the United Arab Emirates
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