April 7, 2023Dated: | Byadmin admin | This decision will give more clarity to Article 21 of Corporate Tax Law, especially on the threshold for applying for small business reliefs. Small business relief is mainly to support and promote start-ups and other micro or small businesses by reducing compliance costs and corporate tax burdens. Through this decision Ministry has clarified the below aspects; DetailsClarifications from the authorityThe threshold for applying for the small business reliefUpto AED 3 Million in a tax year.The validity of the threshold decidedfrom 01st June 2023 till 31st December 2026Accounting standard for determining the revenueApplicable accounting standard accepted in the UAE.Non-applicable categoriesQualifying Free Zone companiesMulti-National Entities whose global turnover is more than AED 3.15 Billion in a year.Tax Loss and disallowed net interest expenditure from a tax year in which small business relief is not electedCan be carried forward to the subsequent tax yearsGAAR provisionsAuthority will consider the total revenue of the entire business or business activity, in case of any artificial separation of the business or business activity for Corporate Tax advantage. Kindly get in touch with us for further consultation on Corporate Tax regulations.