Small Business Relief is a tax-relief scheme in the UAE under the Corporate Tax Law that allows eligible resident businesses with annual revenue of AED 3 million or less to elect the relief and effectively be treated as having no taxable income for the relevant tax period. To qualify, the business must be a resident (natural or juridical person), and the revenue in the current and all previous tax periods must not exceed the AED 3 million threshold, while an election must be made each tax period. Opting into the relief means forgoing other deductions, reliefs, and transfer pricing documentation, although the arm’s-length principle still applies. The relief is not available to persons who are part of a large multinational enterprise group (group revenue AED 3.15 billion or more) or to a Qualifying Free Zone Person choosing the 0% tax rate on qualifying income. In short, Small Business Relief gives smaller UAE-resident companies and individuals a simpler, zero-tax opportunity (up to 2026 under current rules) if they meet the criteria and elect timely — making it an important strategic option for start-ups and SMEs in the UAE corporate tax landscape.