Tax treatment for charitable contributions, entertainment expenses and other deductions

1. Charitable Contributions

Donations made to organizations that do not qualify as public benefit entities will not be eligible for deduction under UAE Corporate Tax regulations.

Entertainment Expenses

Costs related to the entertainment of clients, shareholders, suppliers, and other business associates—including meals, lodging, transportation, admission fees, and facilities or equipment utilized for entertainment, as well as other expenses outlined by a Cabinet decision—may be deducted up to 50% of the total incurred amount.

Other Non-Deductible Expenses

Dividends, profit distributions, and additional expenses specified in a Cabinet decision will not qualify for deduction under UAE Corporate Tax regulations.