Many startups and small business owners in the UAE are rushing to file under Small Business Relief (SBR) — after all, it’s a lifesaver if your annual revenue is below AED 3 million. But here’s the catch: the revenue figure you disclose must be accurate, and this is where a lot of mistakes happen.
What is “Revenue” Under SBR?
The Corporate Tax Law is very clear:
- Article 21 of Federal Decree-Law No. 47 of 2022 introduces Small Business Relief.
- Cabinet Decision No. 49 of 2023 sets the revenue threshold at AED 3,000,000 per tax period (2023–2026).
- Ministerial Decision No. 73 of 2023 clarifies that “Revenue” means the gross income from business and business activities, calculated according to applicable accounting standards accepted in the UAE (i.e., IFRS for SMEs).
So, revenue is your top-line sales/invoicing — the total inflow from your business, before deducting expenses.
It is not:
- Net profit after expenses.
- Cash available in the bank.
- Owner’s drawings or capital.
Common Mistakes We See
Mistake 1: Reporting net profit instead of total invoiced sales.
Mistake 2: Matching revenue only with bank deposits (ignoring receivables or timing differences).
Mistake 3: Forgetting that discounts, returns, or adjustments must also be factored in.
Mistake 4: Assuming “no taxable income = no filing” (wrong, filing is still mandatory).
Each of these errors can trigger FTA queries, penalties, or denial of SBR election.
Why It Matters
Even under SBR, you must file a return and disclose the correct revenue figure. Filing wrong amounts is risky — the FTA has the power to review, re-assess, and impose penalties.
Think of it like telling your doctor you eat “healthy” but hiding the fact that you live on shawarma — sooner or later, the numbers tell the truth.
How to Get It Right
- Prepare proper financial statements for every tax period.
- Use invoices (not bank deposits) as the starting point for revenue.
- Keep supporting records for at least 5 years (as required by Article 56 of the CT Law).
- Get a professional review if in doubt.
Finzoryx Tip: Small Business Relief is not about skipping compliance. It’s about staying stress-free by filing smart, accurate, and backed by records. Always disclose the right revenue — because clarity today means no penalties tomorrow.
Clarity – Compliance – Confidence
At Finzoryx, we emphasise getting these basics right:
- Clarity on what qualifies as revenue for Small Business Relief.
- Compliance with FTA’s Corporate Tax framework and reporting standards.
- Confidence that your filing is accurate and will stand strong in case of audit.
📩 Reach out at connect@finzoryx.com or call 0503978121 if you want us to review your eligibility for Small Business Relief and ensure your Corporate Tax return is filed stress-free.