The UAE has introduced a new tax rule, effective January 1, 2025, allowing businesses to claim 4% annual tax depreciation on investment properties held at fair value, a move aimed at strengthening the real estate and capital-intensive sectors under the corporate tax regime. Issued under Ministerial Decision No. 173 of 2025, the rule resolves long-standing concerns for companies using the fair value model but previously unable to claim deductions. To benefit, businesses must elect the “realisation basis” of taxation—an irrevocable choice with strict deadlines—otherwise they forfeit depreciation rights permanently. The decision also clarifies provisions for group relief, restructurings, and intra-group transfers, while requiring companies to manage deferred tax liabilities arising from temporary differences under international accounting standards. Tax experts stress that this is not just a compliance update but a strategic opportunity for businesses to align tax planning with long-term investment and financing strategies. (ICE DUBAI)

Fonte notizia: https://www.arabianbusiness.com/