Business eligible to opt for Small Business relief, where in the business has not to pay Corporate Taxes on the Income generated for the tax period and can continue to follow cash basis accounting (if it used to in the past) and simpler accounting rules (i.e., Transfer Pricing) can be applied.
A) Eligibility – Conditions
Required to elect every year for relief
Income generated should be equal or less than AED 3 million, in both current year and pervious year
Both Resident and Non-Resident persons are eligible to opt
B) Cannot claim for this relief – Conditions
Activity Criteria – If the company activity as Financial Institute or Holding company
Income generated Criteria – Small businesses members of MNE’s (Multinational Enterprises Group), small businesses cannot claim for relief if the Group income is of AED 3.5 billion
Qualifying Free zone persons Criteria – If a qualifying person comes under the category of 0%, then cannot claim for relief