GTL Summary:

This article provides a definitive list of expenditures that are explicitly disallowed as tax deductions. These include donations to entities that are not Qualifying Public Benefit Entities, most fines and penalties (excluding compensation for damages), bribes and other illicit payments, and dividends or similar profit distributions to owners. Also non-deductible are amounts withdrawn by natural person owners, the Corporate Tax itself, recoverable Value Added Tax (VAT), and income tax paid in a foreign jurisdiction. This list ensures clarity and prevents deductions for expenses that are considered distributions of profit, penalties, or taxes.

Document Type: Tax Law Article
Law: CIT (FDL No 47 of 2022, as amended)
Article Number: 33
Country: 🇦🇪 UAE
Location: Chapter 9 - Deductions
Order: 33
Last updated at: 2025-11-04 11:19:40 UTC

Chapter 9 - Deductions

Article 33 - Non-deductible Expenditure

No deduction is allowed for:

  1. Donations, grants or gifts made to an entity that is not a Qualifying Public Benefit Entity.

  2. Fines and penalties, other than amounts awarded as compensation for damages or breach of contract.

  3. Bribes or other illicit payments.

  4. Dividends, profit distributions or benefits of a similar nature paid to an owner of the Taxable Person.

  5. Amounts withdrawn from the Business by a natural person who is a Taxable Person under paragraph (c) of Clause 3 of Article 11 of this Decree-Law or a partner in an Unincorporated Partnership.

  6. Corporate Tax imposed on a Taxable Person under this Decree-Law.

  7. Input Value Added Tax incurred by a Taxable Person that is recoverable under Federal Decree-Law No. 8 of 2017 referred to in the preamble and what replaces it.

  8. Tax on income imposed on the Taxable Person outside the State.

  9. Such other expenditure as specified in a decision issued by the Cabinet at the suggestion of the Minister.

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