What can United Arab Emirates businesses claim as expenses?

Yes — domestic and international business travel is deductible: airfare, hotel, ground transport, conference fees. Meals while travelling are deductible (subject to the 50% entertainment limit if hosting clients).

Partially — UAE Corporate Tax law restricts the deduction for entertainment expenditure to 50% of the amount incurred. This applies to meals, accommodation, transportation and similar entertainment of clients, customers, suppliers and other business associates.

Yes — depreciation of plant, equipment and fixtures is deductible against Corporate Tax. The UAE follows IFRS for accounting depreciation, and tax depreciation generally aligns to accounting unless specific tax rules apply.

Yes — employee salaries paid to UAE-licensed staff are fully deductible against Corporate Tax. Note: there is no UAE personal income tax. WPS (Wage Protection System) compliance is mandatory for all UAE employers.

Yes — office rent, flexi-desk fees and co-working memberships used for the business are fully deductible against UAE Corporate Tax. Free Zone flexi-desk packages bundled with the trade license are typically deductible as part of the licensing fee.

Yes — fees paid to accountants, legal advisors, tax consultants, auditors and other professionals for the business are fully deductible against Corporate Tax.

Yes — SaaS subscriptions used in the business are fully deductible against Corporate Tax. VAT recoverable on UAE-supplied software at 5%; reverse charge applies to non-UAE supplied digital services.

Yes — trade license issuance and annual renewal fees are deductible against Corporate Tax. This includes the Free Zone licensing fees, mainland DED fees, and any chamber of commerce subscriptions.