UAE Tax Corporate - Deductions

Expenditures that do not fall under capital expenses and are incurred solely for the operations of a taxable entity are generally eligible for tax deductions. However, the UAE Corporate Tax Law imposes restrictions on the deduction of specific expenses. This measure is intended to ensure that tax relief is granted only for costs associated with generating taxable income and to mitigate potential instances of misuse or excessive claims.

In cases where expenses serve multiple purposes, a deduction may be claimed for any identifiable portion of the costs that are incurred exclusively for the generation of taxable income. Furthermore, a reasonable and fair proportion of any non-identifiable expenses related to the generation of taxable income may also be eligible for deduction under UAE Corporate Tax regulations.