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July 30, 2026

This guide explains the rules limiting interest expenditure deductibility. It focuses on the General Interest Deduction Limitation Rule in Article 30, which caps net interest deduction at 30% of adjusted EBITDA or an AED 12 million de minimis threshold. The guide also covers the Specific Interest Deduction Limitation Rule under Article 31, which targets related-party loans for certain transactions. It clarifies the definition of 'Interest', details exceptions for entities like banks, and explains the 10-year carry-forward mechanism for disallowed interest, ensuring proper application of these complex anti-abuse provisions.

Interest Deduction Limitation Rules

Corporate Tax Guide | CTGIDL1

April 2025

1. Glossary

2. Introduction

2.1. Overview
2.2. Purpose of this guide
2.3. Who should read this guide?
2.4. How to use this guide
2.5. Legislative references
2.6. Status of this guide

* Does not include any expenses incurred for earning exempt income (except interest).

Contents