Can I Claim Client Entertainment as a Business Expense in United Arab Emirates?
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.
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What Federal Tax Authority (FTA) says
Article 33 of Federal Decree-Law No. 47 of 2022 limits entertainment expenditure deductions to 50% of the amount incurred. Must be in the context of the business — purely personal entertainment is fully disallowed.
When you can claim
- 50% of client meals at restaurants
- 50% of client accommodation when hosting visitors
- 50% of client transportation arranged for meetings
- 100% of staff entertainment (annual event, team meals — separate rule)
When you cannot claim
- 100% of any entertainment without business association
- Lavish expenditure (FTA challenge risk)
- Personal entertainment dressed up as business
Good to know
Important: Entertainment is one of the few categories with an explicit deduction limit in UAE CT law. Track entertainment in a separate ledger account so the 50% adjustment is straightforward at year-end.
Related expenses
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