Small Business Relief vs QFZP vs standard rates
UAE businesses pay corporate tax at 0% up to AED 375,000 and 9% above by default. Small Business Relief removes the tax entirely for revenue of AED 3 million or less; Qualifying Free Zone Person status gives 0% on qualifying income with no revenue cap but stricter conditions. A QFZP cannot also claim Small Business Relief.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
- Standard rates (0% / 9%)
- AED 47,250.00
- Small Business Relief
- AED 0.00
- Qualifying Free Zone Person
- AED 0.00
- Lowest-tax option
- Small Business Relief
QFZP needs real substance in the free zone, audited accounts and qualifying activities; SBR needs revenue of AED 3m or less every year. A QFZP cannot elect SBR.
Results are estimates for general information, not tailored advice.
Tax under each regime
Taxable income AED 900,000; AED 100,000 non-qualifying revenue.
| Revenue | Standard rates (0% / 9%) | Small Business Relief | Qualifying Free Zone Person |
|---|---|---|---|
| AED 2,800,000 | AED 47,250.00 | AED 0.00 | AED 0.00 |
| AED 5,000,000 | AED 47,250.00 | AED 47,250.00 | AED 0.00 |
Above AED 3m revenue, SBR drops out and the choice is between standard rates and QFZP.
Choosing between them
For a small free zone company, Small Business Relief is usually simpler: no substance test, no audited accounts requirement for corporate tax, no de minimis. QFZP becomes valuable once revenue passes AED 3 million and most income is qualifying. Both need you to register and file.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
Frequently asked questions
Can a free zone company claim Small Business Relief instead of QFZP?
Yes. A free zone company that is not a QFZP (for example, it elects out or fails a condition) can claim Small Business Relief if revenue is AED 3 million or less.
Which is better for a small free zone company?
Usually Small Business Relief, because it has fewer conditions. Above AED 3 million of revenue, QFZP is the only route to 0%.
Corporate tax registration and returns
We register you, prepare the tax computation and file your corporate tax return, with Small Business Relief, QFZP and loss elections handled correctly.