The UAE Federal Tax Authority has published a Corporate Tax Guide on Interest Deduction Limitation Rules - CTGIDL1. The guide explains, among other things, that the deduction of interest is subject to various corporate tax provisions, applied in the following order:
1. General principles of deductibility of expenditure
In general, business expenditure is allowed as a deduction while calculating the taxable income of a taxable person if it is incurred wholly and exclusively for the purpos…