Small Businesses Must File Corporate Tax by September 30, 2026 (Even With Zero Tax Due)

In a critical update issued in August 2026, the Federal Tax Authority (FTA) has urged companies whose financial year ended on December 31, 2025, to submit their Corporate Tax returns and pay any tax due by September 30, 2026.

A common—and potentially costly—misconception among SME owners is that operating below the revenue threshold automatically exempts them from filing paperwork. The authority reminded businesses that eligibility for the relief does not remove their legal obligation to register for Corporate Tax, submit an annual tax return and maintain supporting financial records.

How Small Business Relief (SBR) Actually Works

The Small Business Relief initiative was designed to ease the regulatory burden on startups and smaller enterprises. Small Business Relief applies to eligible UAE resident businesses whose revenue does not exceed Dh3 million during the relevant tax period and all previous tax periods.

If your business falls under this category, an eligible business is treated as having no taxable income for Corporate Tax purposes. However, the zero-tax treatment is not applied automatically by the government. The FTA clarified that businesses claiming Small Business Relief must elect to apply for the relief through their Corporate Tax return.

The Risks of Missing the September Deadline

Missing this approaching deadline carries severe consequences. Failing to file on time could result in late submission penalties and other compliance measures.

In addition to filing the simplified return on time, robust internal bookkeeping remains non-negotiable. Businesses must retain accounting records, invoices, bank statements, and tax files for a minimum of 7 years following the end of the tax period. Should the FTA request a review of your finances, you must be able to prove that your revenue stayed below the Dh3 million threshold.