Interest Deduction Limitation Rules
This guide (CTGIDL1 of 2025) provides guidance on the deductibility of Interest expenditure while calculating the Taxable Income of a Taxable Person, particularly on the following aspects:
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- Meaning of Interest under the Corporate Tax Law,
- Application of the General Interest Deduction Limitation Rule and Specific Interest Deduction Limitation Rule,
- Carry forward and utilisation of disallowed Net Interest Expenditure, and
- Interaction of the Interest limitation rules with other provisions of the UAE Corporate Tax Law.
View the Document: Corporate Tax Guide | CTGIDL1 of 2025
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Important Notice
The above extract has been provided for reference only and is based on information available in the public domain at the time of publication, which is subject to change. This does not constitute any form of advice or recommendation and therefore cannot be relied on to cover specific situations. We highly recommend that you consult with a qualified tax advisor in the UAE for personalized guidance based on your specific business circumstances. We accept no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Please refer to the following resources for the official and up-to-date information on the UAE Corporate Tax legal framework:- UAE Ministry of Finance: https://mof.gov.ae/tax-legislation/; and
- UAE Federal Tax Authority: https://tax.gov.ae/en/Legislation.aspx