# Can I claim Professional Services as a business expense in United Arab Emirates?

**Yes, fully claimable.** Yes, fees paid to accountants, legal advisors, tax consultants, auditors and other professionals for the business are fully deductible against Corporate Tax. Auditors, tax agents and lawyers each need a valid invoice with the supplier's registration number and the business name.

Typical amount: AED 15,000 – AED 75,000 per year Fees for a larger group with transfer pricing work can be well above that range.

## What Federal Tax Authority (FTA) says

Professional service fees incurred wholly and exclusively for business purposes are ordinary deductible expenses under UAE Corporate Tax. VAT charged by registered providers is recoverable as input tax. A Qualifying Free Zone Person must prepare audited financial statements, and the audit fee is a deductible business expense. The cost of advice on setting up the company or raising capital is capital and is not deducted against income. Records that support a deduction must be kept for seven years after the end of the tax period.

## When you can claim

- Audit fees (mandatory for QFZPs and certain entities)
- Tax advisory and Corporate Tax registration fees
- Legal fees for trade contracts and disputes
- Bookkeeping and accounting services
- Fees for transfer pricing studies and related party documentation
- Fees for Corporate Tax registration and return preparation
- Fees of a registered tax agent who represents the business before the Federal Tax Authority

## When you cannot claim

- Legal fees for share issuance or capital raise (capitalised)
- Fees relating to personal matters
- Penalties or fines paid to professionals
- Fees for personal matters of the shareholder such as a family law or immigration case

## Good to know

**Pro tip:** Ask each adviser to split the invoice between recurring compliance work and one-off capital work such as a share issue. A split invoice shows the FTA clearly what is revenue and what is capital.

**Important:** Input VAT on fees is recoverable only if the invoice shows the supplier's tax registration number, and the supply is made to the business. Fees paid to a foreign adviser may be subject to the reverse charge.

Source: https://tax.gov.ae/en/taxes/corporate.tax.aspx

## Related expenses

- [Software Subscriptions](https://accounts-os.com/ae/expenses/software-ae)
- [Trade License Fees](https://accounts-os.com/ae/expenses/trade-license-fees-ae)
- [Employee Salaries](https://accounts-os.com/ae/expenses/employee-salaries-ae)