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.
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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