UAE Corporate Tax Deductible Expenses Reference 2026
UAE Corporate Tax allows deduction of qualifying business expenses. Here is the comprehensive 2026 reference guide on what expenses are deductible for UAE CT purposes.
In this guide:
Generally Deductible Expenses
- Staff costs: Salaries, bonuses, benefits, gratuity (accrued) — all deductible if for business purposes
- Rent: Office, warehouse, manufacturing premises lease — deductible
- Utilities: Electricity, water, internet, phone — deductible
- Professional fees: Legal, accounting, audit, consulting fees — deductible
- Insurance: Business insurance premiums — deductible
- Marketing and advertising: Business promotion costs — deductible
- Travel (business): Flights, hotels for business purposes — deductible
- Depreciation: On qualifying business assets per UAE CT rules
Partially Deductible / Restricted Expenses
- Entertainment: 50% deductible (business entertainment only)
- Interest expense: General interest deductibility; specific EBITDA-based limitation for related party interest
- Personal expenses: Not deductible; must be clearly for business
Non-Deductible Expenses
- CT itself: UAE Corporate Tax payments are not deductible
- Fines and penalties: Not deductible (FTA penalties, MOHRE fines, traffic fines)
- Bribery and illegal payments: Not deductible
- Dividends: Not deductible (distribution of profit, not an expense)
Owner Salary Deductibility
- Owner salary: Salary paid to a director/owner is deductible if it reflects a market-rate salary for services genuinely provided
- Evidence: Document employment contract; pay via WPS; ensure salary is reasonable for services