Osome Accounting & Bookkeeping L.L.C<br>Empire Heights A - 16F-A-04, Business Bay,<br>Dubai, United Arab Emirates

Corporate Tax (CT) has raised the operational baseline for small and medium enterprises (SMEs) in the United Arab Emirates (UAE). Bookkeeping itself has not become more complex, but the country’s tax environment has become far more structured and documentation-driven. Many founders entering or expanding into the UAE continue to rely on familiar habits such as chat-based approvals, scattered PDFs, and month-end categorisation. These practices are understandable, but they no longer align with the expectations created by Corporate Tax, Value Added Tax (VAT), and the broader compliance framework established through Federal Decree.

Corporate Tax relief for small businesses in the UAE, known as Small Business Relief, has been extended to tax periods ending on or before 31 December 2029, three years beyond the previous cut-off of 31 December 2026. The UAE Ministry of Finance (MoF) confirmed the change through Ministerial Decision No. 131. For eligible businesses, this means Small Business Relief can continue to be claimed for additional tax periods, subject to the existing eligibility conditions. Here is what has changed, what it is worth to you, and what to do next.

UAE VAT supplier verification becomes a formal legal requirement from 1 October 2026, under new Federal Tax Authority (FTA) rules. VAT-registered businesses will need to check who they are buying from and how each supply was made before they can safely recover input tax. The rules close a gap the FTA had identified: input tax being claimed on supplies connected, further up the chain, to tax evasion. With just weeks between publication and the effective date, businesses have a narrow window to put verification processes in place.

Taxes & Compliance

Traditional vs Modern Accounting Services in the UAE

UAE Extends Corporate Tax Relief for Small Businesses to 2029: What You Need to Know

UAE VAT Supplier Verification Rules 2026: What Businesses Need to Know