Is the company's Revenue for the relevant and previous tax period 3 million or less?
As per the recent publication company can elect to apply for small business relief if relevant and previous tax period Revenue is 3million or less.
Following are the points which should be considered while applying for small business relief;
* Small Business Relief applies to businesses with revenue up to AED 3,000,000.
*Relief is available for tax periods starting from June 1, 2023, until December 31, 2026.
*Businesses cannot elect to apply the relief if their revenue exceeds the threshold in any relevant or previous tax period.
*Certain businesses, such as Multinational Enterprises Groups and Qualifying Free Zone Persons, are not eligible for the relief.
*If a business elects to apply the Small Business Relief, they cannot carry forward tax losses or net interest expenditure incurred in that period to subsequent periods.
*Unutilized tax losses or net interest expenditure from previous periods can be carried forward if the business did not elect to apply the relief in those periods.
*The tax authority will consider if a business arrangement was undertaken for a valid commercial purpose and if the persons carry on substantially the same business or activity to determine if the business or activity has been artificially separated.