The United Arab Emirates Ministry of Finance has recently issued a new Ministerial Decision No. 173 of 2025 on depreciation adjustments for investment properties held at fair value for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses.
Under this Decision, taxpayers who elect the realisation basis can choose to deduct depreciation from their taxable income for investment properties held at fair value. This depreciation regime allows a fixed annual deduction based on 4% of the property’s original cost, subject to certain limits and adjustments.
In this Alert, our Tax Partner, Olivier Remacle and our Tax Principal, Barbara Schwartz, summarise the key provisions of the Decision, applicable to tax periods starting on or after 1 January 2025, and provide related recommendations.