Definition

Deductible Depreciation is the portion of asset depreciation that can be deducted when calculating taxable income for UAE Corporate Tax.

Key points

• Based on International Financial Reporting Standards (IFRS).
• Must follow accounting treatment, subject to FTA adjustments.
• Applies to tangible and intangible assets used for business.

Practical example

A UAE business records AED 100,000 depreciation on machinery in its financial accounts. This amount is deductible when calculating taxable income.

Why it matters

Allows businesses to recover the cost of assets over time and reduce taxable income.