The UAE Minister of Finance issued, a couple of days ago, a new resolution (Ministerial Resolution No. 73 of 2023) concerning the relief that SMEs and Start-ups (small businesses) can benefit from in relation to their corporate tax. The aim is to support these businesses by reducing their tax burden and compliance costs.

Scope of Application

• Applies to taxable persons where revenue is below AED 3,000,000 for each tax period.
• Applies between 01 June 2023 and 31 December 2026. This means that:
  • If your tax cycle starts in January, you'll be able to claim tax relief as of Jan 2024 until 31 Dec 2026.
  • If your tax cycle starts in June, you'll be able to claim tax relief as of June 2023 until 31 Dec 2026.

Exemptions

• SBR is not applicable to Qualifying Free Zones Entities or Multi National Corporations.
• Splitting the business into 2 or more entities to be able to benefit from the SBR may be considered an example of the "anti-abuse rule" stipulated in the CT Law (Art 50).

Enforcement

The Resolution is yet to be published in the Official Gazette. It comes in force (15) days after it's publication.