GTL Summary:

This provision establishes a clear and straightforward rule for a common business expense. A Taxable Person is permitted to deduct 50% of any entertainment, amusement, or recreation expenditure incurred during a Tax Period. The rule applies to costs for entertaining customers, shareholders, suppliers, or other business partners. Examples of covered expenses include meals, accommodation, transportation, admission fees, and the use of facilities. The deductibility remains subject to the general principle in Article 28, meaning the expenditure must still be for the purpose of the business before the 50% limit is applied.

Document Type: Tax Law Article
Law: CIT (FDL No 47 of 2022, as amended)
Article Number: 32
Country: 🇦🇪 UAE
Location: Chapter 9 - Deductions
Order: 32
Last updated at: 2025-11-04 11:19:40 UTC

Chapter 9 - Deductions

Article 32 - Entertainment Expenditure

Subject to Article 28 of this Decree-Law, a Taxable Person shall be allowed to deduct 50% (fifty percent) of any entertainment, amusement, or recreation expenditure incurred during a Tax Period.
Clause 1 of this Article applies to any expenditure incurred for the purposes of receiving and entertaining the Taxable Person's customers, shareholders, suppliers or other business partners, including, but not limited to, expenditure in connection with any of the following:
1. Meals.
2. Accommodation.
3. Transportation.
4. Admission fees.
5. Facilities and equipment used in connection with such entertainment, amusement or recreation.
6. Such other expenditure as specified by the Minister.

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