UAE Extends Corporate Tax Relief for Small Businesses Until December 2029 to Support Entrepreneurs and Startups

The UAE Ministry of Finance announced on August 7, 2026, that it has extended the small business corporate tax relief programme until December 31, 2029, aiming to support startups and entrepreneurs by reducing their tax burden during the early growth phase. The extension was confirmed by The National and Gulf Insider on August 8, following the ministry's decision to prolong the relief that had been set to expire earlier. Under the relief scheme, eligible small businesses with revenue below a specified threshold can benefit from simplified tax filing requirements and reduced effective rates, easing compliance costs and freeing capital for reinvestment. This policy move is part of the UAE's broader strategy to foster a competitive business environment and attract international entrepreneurs while diversifying the economy beyond oil. The extension signals confidence in the small and medium enterprise sector's role in driving non-oil GDP growth, which reached 79.4 percent of the national economy in Q1 2026. By maintaining favorable tax conditions through 2029, the UAE government is positioning itself to continue drawing global talent and startup capital, even as regional geopolitical uncertainty persists. The decision also aligns with initiatives such as the Dubai Founders HQ and corporate tax framework adjustments introduced in recent quarters, all designed to cement the UAE's status as a hub for innovation and entrepreneurship in the Middle East.