Can I Claim Business Travel as a Business Expense in United Arab Emirates?
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). The deduction needs invoices and proof of the business purpose, such as a meeting invitation or conference registration.
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What Federal Tax Authority (FTA) says
Travel costs incurred wholly and exclusively for business are deductible. Personal extension days mixed into a business trip should be apportioned. Per diems must be reasonable and commercially justified. Under Article 28 the cost of a trip is deductible if it is wholly and exclusively for the business. Where the trip has a personal part, the airfare is deductible when the trip is mainly for business, and the hotel and meals for the personal days are not. Meals with clients during the trip fall under the 50 percent entertainment limit.
When you can claim
- Airfare and rail for business trips
- Hotel accommodation while away on business
- Ground transport (taxi, Uber, Careem) for business
- Conference fees and registration
- Visa, travel insurance and airport transfer costs for business trips
When you cannot claim
- Personal vacation days mixed into a business trip (apportion)
- Spouse/family travel without genuine business reason
- Excessive lavish expenditure
- Upgrades chosen for personal comfort beyond what is reasonable
- Fines for traffic and parking offences incurred on a business trip
Good to know
Pro tip: File a short trip note for each journey with the dates, the meetings held and the business reason. The note, the boarding passes and the invoices make the deduction easy to defend.
Important: Input VAT on travel is recoverable only where the supply is a taxable supply to the business and a valid tax invoice exists. International transport is zero-rated for the supplier, so airfare often carries no VAT. Hotel VAT in the UAE is normally recoverable if the stay was for the business.
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