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May 15, 2026

This Decision explains the elective relief for Taxable Persons holding Investment Properties at fair value who have also elected for the realisation basis of accounting. It allows for an irrevocable election to claim a depreciation deduction for Corporate Tax purposes, calculated as the lower of 4% of the Original Cost per year or the Tax Written Down Value. The Decision defines key terms like 'Investment Property', 'Original Cost', and 'Opening Value', and details rules for the calculation, its application to all investment properties, and the adjustments required upon realisation of the property.

This is not an Official Translation:

Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

Ministerial Decision No. 173 of 2025

Issued 23 June 2025 - (Effective from the date of Issuance)

Minister of State for Financial Affairs:

Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers, and its amendments,
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments,
Ministerial Decision No. 134 of 2023 on the General Rules for Determining Taxable Income for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,

Has decided:

Article 1 - Definitions

Words and expressions in this Decision shall have the meanings specified in the Federal Decree-Law No. 47 of 2022 referred to above ('Corporate Tax Law'), and the following expressions shall have the meanings assigned against each, unless the context otherwise requires: