The introduction of Small Business Relief in the UAE is a welcome move for start-ups and other small or micro businesses. The relief will help reduce their Corporate Tax burden and compliance costs, allowing them to focus on growing their business. The AED3 million revenue threshold is a generous one, allowing businesses to benefit from the relief for up to three years.
The decision also provides clarity on the provisions of the carried forward Tax Losses and disallowed Net Interest Expenditure under the Small Business Relief scheme. This will help businesses plan their finances more effectively and ensure that they are able to take full advantage of the relief available.
The decision also makes it clear that any artificial separation of business or business activity in order to obtain a Corporate Tax advantage will not be tolerated. This is an important measure that will help ensure that businesses are not taking advantage of the system and that all taxpayers are treated fairly.
Overall, this Ministerial Decision on Small Business Relief is an important step towards creating a more supportive environment for start-ups and other small or micro businesses in the UAE. It will help reduce their tax burden, allowing them to focus on growing their business and contributing to economic growth in the country.
Contact us to systematically plan your new businesses and subsidiaries in UAE.