UAE corporate tax reprieve gives 'breathing space' to small businesses

The UAE has extended corporate tax relief for small businesses until 2029, allowing entrepreneurs to weather regional challenges and global headwinds, according to business owners and experts. Small businesses with revenues up to Dh3 million ($816,880) can continue to claim the relief until December 31, 2029. Marie-Claire Accordino, founder of The Accounts Dept, welcomed the decision, stating that it reduces tax-compliance costs and allows start-ups to focus on growth, providing extra liquidity to businesses.

The extension also benefits consulting firms, professional service providers, and tech start-ups, enabling them to fund hires, marketing, or rent. Dr Daamini Shrivastav, a Dubai-based doctor who launched an emergency tool kit business, described the extension as a "huge relief," stating that it provides breathing space and helps her company manage cash flow during unpredictable times.

The business owners will save an estimated Dh25,000 per year due to the extension. Sheetal Soni, a founding partner of MICS financial advisory firm, praised the UAE government's proactive approach, noting that the decision builds confidence in the country's policies and attracts global capital.