UAE publishes decision on Interest Deduction Limitation Rule

On May 23, 2023, the UAE tax authority published Decision No. 126 of 2023 on the general rules for limiting the deduction of interest for corporate tax purposes.

The ruling includes provisions on the definition of interest. It states that the amount of interest that may be deducted from taxable income is the greater of AED 12,000,000 or 30% of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).
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This Decision came into effect the day following the date of its publication.