5 July 2026 · Decision guide
Elect Small Business Relief or Plan for 9%?
Electing Small Business Relief zeroes your taxable income for the period, but you cannot use tax losses or certain deductions while elected. If you are profitable and simply want a clean, nil-tax period under AED 3M, electing is attractive. If you are loss-making or scaling fast, preserving losses by not electing can be worth more. Model both before you decide.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Relief usually wins if…
For steady, profitable small businesses it is simple and clean.
- Revenue is comfortably under AED 3 million.
- You are profitable with no material losses to preserve.
- You want a simple, nil-tax period with minimal computation.
- You do not need deductions/carry-forwards this period.
Plan for 9% if…
Some businesses are better off not electing.
- You have tax losses you want to carry forward.
- You are scaling fast and will exceed AED 3M soon.
- You want to use specific deductions this period.
- Your longer-term position benefits from staying in the normal regime.
Related guides
Frequently Asked Questions
For owners deciding whether to elect Small Business Relief.
Is electing Small Business Relief always best?
No. It gives a nil-tax period but blocks the use of tax losses and certain deductions, so loss-making or fast-growing businesses may prefer not to elect.
Can I change my mind each year?
The election is made per period; your best choice can differ year to year. Model it annually.
What if I might exceed AED 3M soon?
Factor growth in — planning for the normal 0%/9% regime may serve you better as you scale.
Can Exiloz model both options?
Yes. We compare electing relief vs the standard regime on your numbers before you decide.
Make the right election
Exiloz models Small Business Relief against the 9% regime so you choose with numbers, not guesses.