Small businesses must still file corporate tax returns even if no tax is due

The Federal Tax Authority reminded small businesses in the UAE that eligibility for Small Business Relief does not remove their legal obligation to register for Corporate Tax, submit an annual tax return and maintain supporting financial records. The FTA also urged companies whose financial year ended on December 31, 2025 to submit their Corporate Tax returns and pay any tax due by September 30, 2026. Businesses claiming Small Business Relief must elect to apply through their Corporate Tax return. While eligible businesses benefit from a simplified tax return requiring less information, they are still legally required to submit the return within the prescribed deadline. Failing to file on time could result in late submission penalties and other compliance measures. The relief applies to eligible UAE resident businesses whose revenue does not exceed Dh3 million during the relevant tax period and all previous tax periods. Businesses must maintain proper financial records to support the information submitted in their tax returns.