The short answer
Tax planning starts with accurate accounts and an assessment of the actual business. Review allowable treatment, relief eligibility and related-party transactions before filing. A free-zone licence or low revenue is not by itself proof that no tax work is required.
What should you review before asking about savings?
Reconcile the accounts, document the business purpose of expenses and identify owner or related-party transactions. Ask the adviser which accounting amounts need adjustment to arrive at taxable income. Ministry of Finance guidance explains that taxable income starts from accounting income with necessary adjustments. [1]
Keep commercial decisions separate from tax labels. A payment should not be treated as deductible simply because it reduces the bank balance. Likewise, changing a description in the ledger does not change the underlying transaction or create eligibility for relief.
What changed for Small Business Relief?
The Ministry of Finance announced an extension to tax periods ending on or before 31 December 2029. Its announcement retains the AED 3 million revenue threshold and applicable conditions. [2] Ask whether the entity is eligible and what election and record requirements apply; do not describe relief as automatic for every small company.
Assess qualifying free-zone treatment independently. The conditions relate to the person and its income, rather than the words “free zone” on a licence. [1] Record the assessment and review it when activities or income streams change.
What should a useful tax-planning memo include?
It should identify the facts, supporting records, applicable treatment, assumptions and actions before filing. Ask what changes would invalidate the conclusion and who owns the ongoing evidence. Review the cash impact as well as the accounting effect. Avoid a proposal promising guaranteed savings without explaining the business-specific basis.
A checklist to take into your next meeting
- Close and reconcile the accounts.
- Document business purpose and related-party terms.
- Assess relief eligibility and election requirements.
- Keep the reasoning and evidence.
- Review after material business changes.
Official sources
Source pages checked 10 October 2026. Numbered references in the guide correspond to the sources below.
Your next step
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This guide is practical preparation, with official sources where relevant. Company-specific requirements need an assessment of your circumstances. How these guides are prepared.
