Ministry of Finance issues ministerial decision on Depreciation Adjustments for Investment Properties held at Fair Value
ABU DHABI (WAM)The UAE Ministry of Finance has issued a new Ministerial Decision regarding 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 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
16 hours ago
- Zawya
Saudi Arabia sees 144% surge in new mining exploitation licenses in H1 2025
RIYADH — Saudi Arabia recorded a 144 percent increase in new mining exploitation licenses during the first half of 2025 compared to the same period last year, according to a statement issued Thursday by the Ministry of Industry and Mineral Resources. The ministry said it issued 22 exploitation and small-mine licenses in the six-month period, up from just nine in H1 2024, representing a total investment exceeding SR134 million ($35.7 million). The ministry attributed the significant growth to reforms aimed at improving the investment climate in the mining sector, which is emerging as a central pillar in the Kingdom's economic diversification plans. Ministry spokesperson Jarrah Aljarrah confirmed that 23 mining companies obtained licenses in the first half of 2025, including 16 firms receiving their first-ever mining license. The licensed areas span 47 square kilometers and are expected to produce 7.86 million tons annually of various minerals including salt, clay, silica sand, low-grade iron ore, feldspar, and gypsum. As of June 2025, Saudi Arabia had 239 active exploitation and small-mine licenses, including 32 category A licenses for strategic minerals such as gold, copper, phosphate, and bauxite. The remaining 207 category B licenses cover industrial minerals like silica sand, gypsum, limestone, salt, and clay. The ministry reiterated its commitment to expanding the mining sector as a key driver of the Kingdom's industrial future. It aims to unlock an estimated SR9.4 trillion ($2.5 trillion) in untapped mineral resources, positioning the sector as a third pillar of the Saudi industrial economy. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
a day ago
- Zawya
ADGM's FSRA publishes 2024 annual report, reflecting on year of growth, innovation
ABU DHABI, 24th July 2025 (WAM) -- The Financial Services Regulatory Authority (FSRA) of ADGM, the international financial centre of the capital of the UAE, has published its 2024 Annual Report, outlining the Authority's key regulatory achievements and underscoring its commitment to delivering a world-class regulatory environment for financial services. The report reflects on a year during which the FSRA advanced its objectives and regulatory priorities significantly, particularly in ensuring that its regulatory framework remained aligned to international standards and the critical area of financial crime prevention. Innovation remained a central focus in 2024, especially in the area of digital assets, where the FSRA introduced a dedicated regulatory framework for fiat-referenced tokens (FRTs), a particular category of stablecoins. The new regime sets clear standards on reserves quality, governance, and redemption rights to ensure financial stability and investor protection. By recognising FRT issuance as a regulated activity, the FSRA has reinforced ADGM's position as a leading hub for responsible financial innovation. Of particular note were proposals to enhance the regulatory framework based on increased alignment with the Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision (BCBS), subsequently implemented. Alongside this, a comprehensive ADGM-wide whistleblowing framework was introduced to strengthen transparency and market integrity. In the area of financial crime, the FSRA, alongside other authorities and ministries in the UAE, was instrumental in providing technical input that helped further enhance effective AML and Counter Financing of Terrorism (CFT) controls in the country. These efforts contributed significantly towards the removal in 2024 of the UAE from the Financial Action Task Force (FATF) grey list. These key legislative and policy initiatives, amongst others, enhanced the regulatory landscape, ensuring resilience, transparency, and innovation within ADGM. Beyond this, the FSRA worked closely with domestic and international partners to shape sound regulation, promote cross-border cooperation, and support national policy objectives. The year was again one of continuing growth for financial services in ADGM as the number of financial services firms licensed by the FSRA rose by 30% to 272 from a year earlier, the largest annual increase to date. The report also highlights the FSRA's efforts to invest in talent development, including the Al Yah Programme for UAE nationals, which continues to combine technical training, soft skills development, and mentorship. Looking forward, the FSRA remains focused on enabling sustainable financial growth, technological agility, and robust market confidence through innovation, collaboration and principled regulation. Emmanuel Givanakis, CEO of the FSRA of ADGM, said, 'As we reflect on the key achievements of 2024, it is clear that the FSRA has made significant strides in enhancing the environment for financial services to thrive in ADGM. This is driven by our commitment to innovation and progressive regulation, whilst maintaining market integrity and investor protection. From streamlining our supervisory focus to continuing to enhance our regulatory framework, including for digital assets and sustainable finance, we have continued to build a trusted, risk-proportionate, and forward-looking regulatory environment. Looking ahead, we remain focused on deepening collaboration with stakeholders to ensure Abu Dhabi, and the UAE more widely, continues to thrive as a leading global financial hub.'
Al Etihad
a day ago
- Al Etihad
17,600 Afghans hosted by UAE prior to departure to final destinations
24 July 2025 23:34 ABU DHABI (WAM)As part of its humanitarian commitment and swift response during crises, the United Arab Emirates hosted 17,619 Afghans who were evacuated from Afghanistan since August 2021, before their resettlement in third countries. This step was carried out in cooperation with international partners to support the Afghan people amid the exceptional circumstances the country Emirates Humanitarian City in Abu Dhabi received the Afghan evacuees, providing high-quality services and facilities before their departure to 21 final destinations. The total cost of the hosting amounted to Dh 1.384 billion ($ 367 million), providing a comprehensive framework for dignified temporary accommodation that met the full range of needs, particularly those of children, the elderly, and UAE also facilitated the evacuation of 41,000 individuals from Afghanistan, including Afghan citizens and foreign nationals residing in the country. Driven by its commitment to supporting friendly nations, the UAE responded to requests for assistance in evacuating their citizens from Afghanistan and facilitating their eventual return their stay, the UAE provided all essential needs to Afghan nationals, including healthcare, logistical and diplomatic services, and communications, in addition to shelter and food – ensuring their comfort, dignity, and well-being. Financial assistance was also provided to help families rebuild their lives in their final facilitate the resettlement process, all necessary departure services were provided within the Emirates Humanitarian City. This included the establishment of 17 embassy offices, along with offices for the U.S. Citizenship and Immigration Services (USCIS), the International Organisation for Migration (IOM), U.S. Customs and Border Protection (CBP), and two offices for international non-governmental the healthcare domain, the UAE undertook extensive efforts to care for residents of the Emirates Humanitarian City – including Afghans and foreign nationals – especially during the COVID-19 crisis. These efforts included providing necessary vaccines and preventive treatments, with a total of 34,923 vaccines administered to all residents by specialised medical comprehensive healthcare services were offered to more than 303 newborns, while successfully completing over 303 surgeries across various specialities, including three critical cases treated abroad. In total, more than 254,572 medical services were provided throughout their temporary the field of educational and vocational training, the UAE provided education to more than 3,764 Afghans, including approximately 800 children enrolled in nurseries with school transportation and continuous follow-up. Authorities also organised more than 39 educational courses, in addition to vocational training and development workshops, which benefited 2,589 Afghan Emirates Humanitarian City facilities include outdoor courtyards, several playgrounds and entertainment facilities dedicated to children, women, and the elderly, in addition to a preventive healthcare centre. Residents also have access to the necessary means for sustenance, including medicine, food, and other essential supplies, reflecting the values and traditions of Emirati UAE is among the leading countries in providing aid to Afghanistan, and has spared no effort in assisting the Afghan people. This reflects the country's humanitarian message, rooted in values of peace, consolidating coexistence, tolerance, and the principles of human fraternity. In addition, the UAE is committed to reinforcing solidarity with nations enduring the most challenging its founding, the UAE has prioritised human dignity and people's well-being as a cornerstone to the country's approach – regardless of ethnic, religious, or geographical backgrounds. This value aligns with the country's noble humanitarian principles, which have become a global symbol of generosity and giving. Notably, the UAE ranks among the top donor countries to Afghanistan. Over the past three years alone, the UAE has provided Dh 740 million in humanitarian and relief aid, including the establishment of an air bridge to deliver hundreds of tonnes of relief and food supplies, which benefited more than one million people – primarily children, the elderly, and women. The UAE also provided medical assistance during the COVID-19 pandemic and opened 10 maternity and women's healthcare centres across seven Afghan provinces.
