Definition

Accounting Profit is the net profit reported in a company’s financial statements under IFRS before applying adjustments required by UAE Corporate Tax law. It includes all revenues and expenses recognized according to accounting standards.

Key Points

• Used as the starting point for Corporate Tax calculations
• Adjusted for non-deductible expenses and exempt income
• Appears in audited financial statements
• May differ from taxable income due to tax-specific rules

Example

A UAE company shows AED 1,200,000 profit in its IFRS financial statements. This figure is the Accounting Profit, which will then be adjusted to determine taxable income.