MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value
Under this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value basis.
The tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate tax.
The decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the taxpayer.
The decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value basis.
To avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going forward.
Given the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation deduction.
Finally, the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property.
The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice.
WAM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
an hour ago
- Gulf Today
Ministry of Finance achieves 96.57% in Customer Happiness Index for H1
The Ministry of Finance (MoF) recorded outstanding results in customer satisfaction and service quality during the first half of 2025, driven by the effectiveness of its digital advisory channels and call centre. Performance indicators revealed a significant rise in customer satisfaction, reaching 96.57 percent, while 97.30 percent of customer requests were successfully resolved during the first call. These results demonstrate the ministry's commitment to improving service excellence, enhancing government performance, and delivering innovative, proactive, and digital solutions that upgrade the overall customer experience. Key performance indicators demonstrated notable improvement compared to the same period last year, surpassing several pre-set targets such as the speed of processing customer requests, reduction in waiting time, and efficiency in responding to calls. Notably, the quality performance index recorded a significant increase, reaching 90.92 percent, exceeding the target of 80 percent and outperforming the 88 percent achieved during the first half of the previous year. This performance reflects the technical competence of MoF teams and the ministry's ongoing efforts to enhance operational methodologies at the call centre. Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, emphasised that the call centre's performance during the first half of 2025 has been the result of the ministry's steadfast commitment to improving customer experience by simplifying procedures, eliminating bureaucracy, enhancing performance standards, and developing digital communication channels. 'Our efforts align with the objectives of 'The UAE Government Charter for Future Services-The UAE Promise', which prioritises digital services by default, seamless and proactive experience, and value-added services,' AlKhoori said. 'MoF call centre has become a key pillar in achieving the ministry's customer happiness objectives, thanks to its rapid responsiveness, effective handling of inquiries and feedback, as well as the provision of diversified communication channels that meet customers' needs with ease and efficiency.' AlKhoori added, 'The positive results we achieved would not have been possible had it not been for the readiness of our highly qualified national cadres and the ministry's advanced technological infrastructure, which supports operational efficiency and enables the delivery of innovative solutions. "Our use of artificial intelligence and advanced data analytics has played a pivotal role in proactively meeting customer needs and achieving outstanding performance levels. The ministry will continue to expand its digital services and upgrade communication channels to improve the customer journey and attain the highest standards of institutional excellence.' During H1 2025, the ministry's call centre successfully answered 90.8 percent of incoming calls within 20 seconds, a significant improvement over the 87.6 percent recorded during the same period last year and well above the 80 percent target. In total, the ministry responded to 28,315 customer service requests in the first half of 2025. Meanwhile, the percentage of unanswered calls decreased to 1.48 percent, surpassing the set target of 5 percent and improving on last year's first-half rate of 2 percent. The average duration of incoming calls was 4 minutes and 41 seconds, staying below the targeted five-minute benchmark. Furthermore, the average hold time was effectively reduced to zero, with all calls being answered immediately, exceeding the 15-second response target. These figures highlight the ministry's commitment to delivering fast, efficient, and responsive services that exceed customer expectations. WAM
Zawya
3 hours ago
- Zawya
2025 Country Report on Cameroon: the African Development Bank urges the country to strengthen capital mobilization for sustainable growth
The African Development Bank Group ( officially launched its 2025 Country Report on Cameroon in Yaoundé on 22 July 2025. The launch ceremony featured frank and wide-ranging discussions on the country's economic challenges. Country reports form part of the African Development Bank's African Economic Outlook 2025 which provides an annual assessment of the economic performance and outlook of the continent's 54 countries by examining growth trends, socio-economic challenges, and development progress. The 2025 AEO report was released last May during the Bank Group's Annual Meetings held in Abidjan, Côte d'Ivoire, under the theme 'Maximizing Africa's Capital for Sustainable Development. "Making Cameroon's Capital Work Better for its Development," highlights the levers that will enable the country to strengthen domestic resource mobilization and boost inclusive and resilient growth. It calls on the government, the private sector, civil society, and development and financial partners to collectively re the drivers of the country's structural transformation. The ceremony was attended by members of the Cameroonian government, notably representatives from the Ministry of the Economy, Planning and Regional Development, the Ministry of Finance, the Ministry of Trade as well as the business sector. The report paints a picture of an economy in recovery, with estimated growth of 3.6 percent in 2024, mainly by continued investment in infrastructure and strong momentum in manufacturing industries, which have benefited from efforts to transform local agricultural and textile products. The country paper relies on a detailed analysis to identify sectors where Cameroon can make progress, particularly in mobilizing domestic resources, strengthening governance, improving the business climate, digitalization and optimizing its natural capital potential. The report also identifies several priority reforms to enable Cameroon to transform its potential into concrete growth drivers, including reducing tax exemptions and accelerating digitalization, restructuring strategic public corporations, particularly in the energy and refining sectors. Report findings also stress the importance of strengthening governance, transparency and the rule of law through greater accountability and the publication of the financial statements of public corporations. This includes the need to adopt the National Integrated Financing Strategy (SNFI) to diversify funding sources and leverage carbon market opportunities. Consolidating the financial sector, processing commodities locally and developing regional infrastructure round out the list of priorities. Finally, the report calls for preserving macroeconomic balances by gradually reducing fuel price subsidies at the pump while supporting investment spending, prioritizing concessional financing, accelerating development in insecure areas and strengthening budgetary capacity to better absorb shocks. Ameth Saloum Ndiaye, African Development Bank Senior Country Economist for Cameroon and Godwill Kan Tange, Country Economist for Cameroon, presented the report's main findings. They emphasized the report's concrete proposals to optimize the use of budgetary resources, as well as the country's natural, human and financial capital, with a view to stimulating more inclusive and sustainable growth. The presentation also explored key issues such as public corporation reform, governance, debt management, industrial development, vocational training and the challenges of mobilizing innovative financing, as well as sovereign debt ratings for African economies. "The African Development Bank Group commends the Cameroonian authorities for their commitment to implementing a National Integrated Financing Strategy, which is currently being adopted and should enable the country to diversify financing sources for its development agenda. This means that the report is fully aligned with the government's priorities," said Mamadou Tangara, Head of Operations, speaking on behalf of the Bank's Director General for Central Africa. The Secretary General of Cameroon's Ministry of the Economy, Planning and Regional Development, Jean Tchoffo, representing the Bank's Governor for Cameroon, welcomed the Bank's recommendations, which are aligned with the National Development Strategy 2030 (SND30). "This report comes at a key moment, as we are conducting a mid-term review of the implementation of our National Development Strategy 2020-2030,' Tchoffo said. 'We are convinced that its recommendations will enrich our thinking and strengthen our efforts to return to solid, sustainable and inclusive growth and accelerate the structural transformation of our economy." Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Al Etihad
5 hours ago
- Al Etihad
Ministry of Finance achieves 96.57% in Customer Happiness Index for H1
28 July 2025 12:35 DUBAI (WAM)The Ministry of Finance (MoF) recorded outstanding results in customer satisfaction and service quality during the first half of 2025, driven by the effectiveness of its digital advisory channels and call indicators revealed a significant rise in customer satisfaction, reaching 96.57 percent, while 97.30 percent of customer requests were successfully resolved during the first results demonstrate the ministry's commitment to improving service excellence, enhancing government performance, and delivering innovative, proactive, and digital solutions that upgrade the overall customer performance indicators demonstrated notable improvement compared to the same period last year, surpassing several pre-set targets such as the speed of processing customer requests, reduction in waiting time, and efficiency in responding to the quality performance index recorded a significant increase, reaching 90.92 percent, exceeding the target of 80 percent and outperforming the 88 percent achieved during the first half of the previous year. This performance reflects the technical competence of MoF teams and the ministry's ongoing efforts to enhance operational methodologies at the call of the Ministry of Finance, Younis Haji AlKhoori, emphasised that the call centre's performance during the first half of 2025 has been the result of the ministry's steadfast commitment to improving customer experience by simplifying procedures, eliminating bureaucracy, enhancing performance standards, and developing digital communication channels.'Our efforts align with the objectives of 'The UAE Government Charter for Future Services-The UAE Promise,' which prioritises digital services by default, seamless and proactive experience, and value-added services,' AlKhoori said.'MoF call centre has become a key pillar in achieving the ministry's customer happiness objectives, thanks to its rapid responsiveness, effective handling of inquiries and feedback, as well as the provision of diversified communication channels that meet customers' needs with ease and efficiency.'AlKhoori added, 'The positive results we achieved would not have been possible had it not been for the readiness of our highly qualified national cadres and the ministry's advanced technological infrastructure, which supports operational efficiency and enables the delivery of innovative solutions."Our use of artificial intelligence and advanced data analytics has played a pivotal role in proactively meeting customer needs and achieving outstanding performance levels. The ministry will continue to expand its digital services and upgrade communication channels to improve the customer journey and attain the highest standards of institutional excellence.'During H1 2025, the ministry's call centre successfully answered 90.8 percent of incoming calls within 20 seconds, a significant improvement over the 87.6 percent recorded during the same period last year and well above the 80 percent total, the ministry responded to 28,315 customer service requests in the first half of the percentage of unanswered calls decreased to 1.48 percent, surpassing the set target of 5 percent and improving on last year's first-half rate of 2 percent. The average duration of incoming calls was 4 minutes and 41 seconds, staying below the targeted five-minute the average hold time was effectively reduced to zero, with all calls being answered immediately, exceeding the 15-second response target. These figures highlight the ministry's commitment to delivering fast, efficient, and responsive services that exceed customer expectations.
