Article 29 confirms the general deductibility of interest expenditure. It states that, notwithstanding the rule against deducting costs related to exempt income in Article 28, interest is deductible in the Tax Period it is incurred. However, this deductibility is explicitly subject to the other general provisions of Article 28 (e.g., the 'wholly and exclusively' test) and, critically, the specific limitation rules detailed in Articles 30 and 31. This provision acts as a gateway, permitting interest as a deductible category before applying specific anti-avoidance caps and restrictions on related-party debt financing.
Document Type: Tax Law Article Law: CIT (FDL No 47 of 2022, as amended) Article Number: 29 Country: 🇦🇪 UAE Location: Chapter 9 - Deductions Order: 29 Last updated at: 2025-11-04 11:19:40 UTC
Notwithstanding paragraph (b) of Clause 2 of Article 28 of this Decree-Law, Interest expenditure shall be deductible in the Tax Period in which it is incurred, subject to the other provisions of Article 28 and Articles 30 and 31 of this Decree-Law.