Do I need toregister for corporate tax? 

To ease theburden of corporate taxation and compliance expenses for small andmicro-enterprises, the Ministry of Finance issued Ministerial Decision No. 73of 2023 concerning Small Business Relief (SBR). Subsequently, the Federal TaxAuthority (FTA) has released a comprehensive guide on SBR and providedclarifications regarding its application. Here are the key highlights of theSBR: 

·     Eligibility: All resident taxableindividuals qualify for SBR if their total turnover for the relevant tax periodand the preceding tax periods does not exceed AED 3,000,000. 

·     Applicability Period: Thethreshold mentioned above applies to tax periods starting on or after June 1,2023, and remains in effect for subsequent tax periods ending on or beforeDecember 31, 2026. 

·     Ineligibility: The followingindividuals are not eligible for SBR 

o   Constituentcompanies of multinational enterprise groups with a turnover exceeding AED 3.15billion. 

o   Qualifying freezone individuals. 

Should abusiness owner opt for SBR, they will be exempt from paying corporate taxesduring the specified periods. However, it is mandatory to register for corporate tax and file an annual corporate tax return.