{"id":16438,"date":"2026-03-02T11:47:48","date_gmt":"2026-03-02T11:47:48","guid":{"rendered":"https:\/\/mbbauditing.com\/staging\/8512\/?p=16438"},"modified":"2026-07-20T05:26:50","modified_gmt":"2026-07-20T05:26:50","slug":"uae-ministerial-decision-on-depreciation-adjustments-for-investment-properties-held-at-fair-value","status":"publish","type":"post","link":"https:\/\/mbbauditing.com\/staging\/8512\/uae-ministerial-decision-on-depreciation-adjustments-for-investment-properties-held-at-fair-value\/","title":{"rendered":"UAE Ministerial Decision on Depreciation Adjustments for Investment Properties Held at Fair Value"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"16438\" class=\"elementor elementor-16438\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-74fc68e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"74fc68e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3fc6dcf\" data-id=\"3fc6dcf\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5bbe3dc elementor-widget elementor-widget-text-editor\" data-id=\"5bbe3dc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As the <\/span><b>UAE corporate tax regime<\/b><span style=\"font-weight: 400;\"> continues to evolve, the <\/span><b>UAE Ministry of Finance<\/b><span style=\"font-weight: 400;\"> has issued a significant new policy, Ministerial<\/span><b> Decision No. 173 of 2025<\/b><span style=\"font-weight: 400;\">, on depreciation adjustments for investment properties held at fair value for <\/span><b>Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses<\/b><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Pursuant to this Decision, taxpayers who elect the realisation basis are entitled to claim an annual depreciation deduction on investment properties accounted for at fair value. This ministerial decision brings clarity and tax consistency to how businesses can claim depreciation on investment properties measured at fair value, addressing a long-standing gap between<\/span><a href=\"https:\/\/vac.wrc.mybluehost.me\/accounting-and-bookkeeping-2\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\"> accounting<\/span><\/a><span style=\"font-weight: 400;\"> practices and tax law.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-08a46ee elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"08a46ee\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d5e3f7e\" data-id=\"d5e3f7e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-260e0fc elementor-widget elementor-widget-heading\" data-id=\"260e0fc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What the Ministerial Decision Covers<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-48e1ace elementor-widget elementor-widget-text-editor\" data-id=\"48e1ace\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><b>Ministerial Decision No. 173 of 2025<\/b><span style=\"font-weight: 400;\"> was issued on <\/span><b>23 June 2025<\/b><span style=\"font-weight: 400;\"> and applies to <\/span><b>tax periods beginning on or after January 1, 2025,<\/b><span style=\"font-weight: 400;\"> under the UAE Corporate Tax regime.<\/span><\/p><p><span style=\"font-weight: 400;\">The decision specifically addresses depreciation adjustments for <\/span><b>investment properties held at fair value, as<\/b><span style=\"font-weight: 400;\"> defined under <\/span><b>International Accounting Standard (IAS) 40, ensuring<\/b><span style=\"font-weight: 400;\"> these assets are treated fairly for corporate tax purposes.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b733669 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b733669\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1bc5a97\" data-id=\"1bc5a97\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-723049e elementor-widget elementor-widget-heading\" data-id=\"723049e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key Highlights of the Depreciation Adjustments<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a486e80 elementor-widget elementor-widget-text-editor\" data-id=\"a486e80\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><b>Irrevocable Election for Depreciation<\/b><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e5a8fa elementor-widget elementor-widget-text-editor\" data-id=\"0e5a8fa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Taxable persons must make an <\/span><b>irrevocable election<\/b><span style=\"font-weight: 400;\"> to apply the depreciation adjustments. Once made, this election applies to all investment properties held at fair value and cannot be changed later.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7b2b197 elementor-widget elementor-widget-text-editor\" data-id=\"7b2b197\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><b>Eligibility Requirements<\/b><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-87b32f4 elementor-widget elementor-widget-text-editor\" data-id=\"87b32f4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">To qualify for this benefit:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The entity must prepare financial statements on an <\/span><b>accrual basis<\/b><span style=\"font-weight: 400;\">; and<\/span><span style=\"font-weight: 400;\"><br \/><br \/><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Eligible Taxable Persons may choose to claim depreciation on Investment Properties that are recorded at fair value under the relevant Accounting Standards.<\/span><span style=\"font-weight: 400;\"><br \/><br \/><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investment Property refers to a building, or part of a building, held to earn rental income or for capital appreciation, as defined under IAS 40. Land and other IAS 40 exclusions are not included.<\/span><span style=\"font-weight: 400;\"><br \/><br \/><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once this option is elected, it cannot be reversed and must be applied to all Investment Properties held at fair value, without selective application.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-33cd566 elementor-widget elementor-widget-text-editor\" data-id=\"33cd566\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><b>Depreciation Mechanics<\/b><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-81aa366 elementor-widget elementor-widget-text-editor\" data-id=\"81aa366\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Under the Ministerial Decision:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax depreciation is calculated annually<\/b><span style=\"font-weight: 400;\"> as the <\/span><b>lower of<\/b><span style=\"font-weight: 400;\">:<\/span><span style=\"font-weight: 400;\"><br \/><\/span><b>4% of the original cost<\/b><span style=\"font-weight: 400;\"> of the investment property; or<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">the <\/span><b>Tax Written Down Value (TWDV)<\/b><span style=\"font-weight: 400;\"> at the start of the tax period.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The deduction is <\/span><b>prorated if the asset is held for part of a tax period.<\/b><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The depreciation continues until the TWDV is nil, the property is disposed of, or fair value accounting ceases.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-628e18c elementor-widget elementor-widget-text-editor\" data-id=\"628e18c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><b>Determining Original Cost and Opening Value<\/b><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6564730 elementor-widget elementor-widget-text-editor\" data-id=\"6564730\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The decision clearly defines terms such as<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Original Cost:<\/b><span style=\"font-weight: 400;\"> the cost as specified under IAS 40, including capitalised additions.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opening Value:<\/b><span style=\"font-weight: 400;\"> original cost reduced by accumulated depreciation of 4% per year held before corporate tax.<\/span><\/li><\/ul><p><b>Tax Written Down Value:<\/b><span style=\"font-weight: 400;\"> the opening value less depreciation previously applied.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d1a491b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d1a491b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ef1e54c\" data-id=\"ef1e54c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4729001 elementor-widget elementor-widget-heading\" data-id=\"4729001\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Tax Planning and Compliance Considerations\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-56d2410 elementor-widget elementor-widget-text-editor\" data-id=\"56d2410\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><b>Election Timing<\/b><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ac2bc90 elementor-widget elementor-widget-text-editor\" data-id=\"ac2bc90\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Taxpayers must make the irrevocable depreciation election on the <\/span><b>tax return for the first period<\/b><span style=\"font-weight: 400;\"> in which they either hold investment property or the election applies. Failure to do so will <\/span><b>forfeit the opportunity<\/b><span style=\"font-weight: 400;\"> to claim depreciation.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2615bf5 elementor-widget elementor-widget-text-editor\" data-id=\"2615bf5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t\n<table id=\"tablepress-2\" class=\"tablepress tablepress-id-2\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Scenario<\/th><th class=\"column-2\">Deadline for the sub-election<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">1. Taxable person holds investment property during first tax period to which this MD applies<\/td><td class=\"column-2\">Sub-election to be made whilst filing the CT return for that period.<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">2. Taxable person does not hold investment property during first tax period to which this MD applies<\/td><td class=\"column-2\">Election to be made in the CT return for the tax period in which the first investment property is held.<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">3. Taxable person has elected for Small Business Relief in the prior tax period<\/td><td class=\"column-2\">Election to be made in the CT return for the first tax period in which the relief does not apply.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-2 from cache -->\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f487cf0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f487cf0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-17a62bf\" data-id=\"17a62bf\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-675ac45 elementor-widget elementor-widget-heading\" data-id=\"675ac45\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Tax Planning and Compliance Considerations\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3657932 elementor-widget elementor-widget-text-editor\" data-id=\"3657932\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Realisation happens when an asset is sold, disposed of, derecognised, becomes fully worthless, or when the entity changes from the fair value to the cost model. It also applies if the entity becomes exempt, elects Article 21, or ceases business through dissolution or liquidation.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When a realisation event occurs, the total depreciation previously claimed must be added back to the Taxable Income. This does not apply if the transfer qualifies for intra-group relief or takes place within the same Tax Group.<\/span><span style=\"font-weight: 400;\"><br \/><br \/><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Depreciation add-back is calculated based on the total depreciation claimed, adjusted for any partial disposal. If the transferor is no longer a Taxable Person, the add-back obligation shifts to the transferee.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5400747 elementor-widget elementor-widget-text-editor\" data-id=\"5400747\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><b>Anti-abuse Provision<\/b><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de24956 elementor-widget elementor-widget-text-editor\" data-id=\"de24956\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If investment property is transferred between related parties without valid commercial reasons, the tax authority may <\/span><b>disallow depreciation deductions<\/b><span style=\"font-weight: 400;\"> to prevent tax avoidance.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3f2384f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3f2384f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-06371b5\" data-id=\"06371b5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3aecd01 elementor-widget elementor-widget-heading\" data-id=\"3aecd01\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why This Matters for Businesses in the UAE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5066607 elementor-widget elementor-widget-text-editor\" data-id=\"5066607\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The Ministerial Decision plays a crucial role in the UAE\u2019s tax landscape by:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Aligning tax outcomes with <\/b><a href=\"https:\/\/vac.wrc.mybluehost.me\/accounting-and-bookkeeping-2\/\" rel=\"nofollow noopener\" target=\"_blank\"><b>accounting<\/b><\/a><b> practices<\/b><span style=\"font-weight: 400;\"> for fair-valued investment properties;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Promoting fairness and neutrality<\/b><span style=\"font-weight: 400;\"> for all taxpayers, regardless of the\u00a0 property valuation model;<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improving reporting transparency<\/b><span style=\"font-weight: 400;\"> and compliance under the corporate tax regime.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">By granting a clear depreciation treatment, the decision helps companies <\/span><b>better forecast taxable income<\/b><span style=\"font-weight: 400;\">, optimise tax planning, and enhance financial predictability under <\/span><b>Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses<\/b><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fd68549 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fd68549\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0b60735\" data-id=\"0b60735\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b61fe9c elementor-widget elementor-widget-heading\" data-id=\"b61fe9c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why Choose MBB Auditing?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72dfdd6 elementor-widget elementor-widget-text-editor\" data-id=\"72dfdd6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">At <\/span><a href=\"https:\/\/vac.wrc.mybluehost.me\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">MBB Auditing<\/span><\/a><span style=\"font-weight: 400;\">, we are more than an audit firm &#8211; we are your trusted partner in navigating the evolving UAE regulatory landscape with confidence and clarity. Our team of certified auditors and consultants delivers end-to-end solutions, ensuring full compliance with internationally recognised standards such as ISA, IAS, and <\/span><a href=\"https:\/\/vac.wrc.mybluehost.me\/ifrs-audit-advisory\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">IFRS<\/span><\/a><span style=\"font-weight: 400;\">. With a personalised approach tailored to your business needs, we provide strategic guidance and dedicated support at every stage.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cebdd8d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cebdd8d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b828880\" data-id=\"b828880\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4dbecb3 elementor-widget elementor-widget-heading\" data-id=\"4dbecb3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">FAQs:\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-65a25a8 elementor-widget elementor-widget-toggle\" data-id=\"65a25a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"toggle.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-toggle\">\n\t\t\t\t\t\t\t<div class=\"elementor-toggle-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1061\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-1061\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon elementor-toggle-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-closed\"><svg class=\"e-font-icon-svg e-fas-caret-right\" viewBox=\"0 0 192 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M0 384.662V127.338c0-17.818 21.543-26.741 34.142-14.142l128.662 128.662c7.81 7.81 7.81 20.474 0 28.284L34.142 398.804C21.543 411.404 0 402.48 0 384.662z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-opened\"><svg class=\"elementor-toggle-icon-opened e-font-icon-svg e-fas-caret-up\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M288.662 352H31.338c-17.818 0-26.741-21.543-14.142-34.142l128.662-128.662c7.81-7.81 20.474-7.81 28.284 0l128.662 128.662c12.6 12.599 3.676 34.142-14.142 34.142z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-toggle-title\" tabindex=\"0\"> Who is eligible to claim depreciation under this decision?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<div id=\"elementor-tab-content-1061\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-1061\"><p><span style=\"font-weight: 400;\">Eligible taxable persons must:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepare financial statements on an accrual basis.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hold investment properties accounted for at fair value under IAS 40.<\/span><\/li><\/ul><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-toggle-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1062\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-1062\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon elementor-toggle-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-closed\"><svg class=\"e-font-icon-svg e-fas-caret-right\" viewBox=\"0 0 192 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M0 384.662V127.338c0-17.818 21.543-26.741 34.142-14.142l128.662 128.662c7.81 7.81 7.81 20.474 0 28.284L34.142 398.804C21.543 411.404 0 402.48 0 384.662z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-opened\"><svg class=\"elementor-toggle-icon-opened e-font-icon-svg e-fas-caret-up\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M288.662 352H31.338c-17.818 0-26.741-21.543-14.142-34.142l128.662-128.662c7.81-7.81 20.474-7.81 28.284 0l128.662 128.662c12.6 12.599 3.676 34.142-14.142 34.142z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-toggle-title\" tabindex=\"0\">Is the election to claim depreciation reversible?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<div id=\"elementor-tab-content-1062\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-1062\"><p><span style=\"font-weight: 400;\">No. The election is <\/span><b>irrevocable<\/b><span style=\"font-weight: 400;\"> and must apply to <\/span><b>all investment properties held at fair value<\/b><span style=\"font-weight: 400;\">; selective application is not allowed.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-toggle-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1063\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-1063\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon elementor-toggle-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-closed\"><svg class=\"e-font-icon-svg e-fas-caret-right\" viewBox=\"0 0 192 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M0 384.662V127.338c0-17.818 21.543-26.741 34.142-14.142l128.662 128.662c7.81 7.81 7.81 20.474 0 28.284L34.142 398.804C21.543 411.404 0 402.48 0 384.662z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-opened\"><svg class=\"elementor-toggle-icon-opened e-font-icon-svg e-fas-caret-up\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M288.662 352H31.338c-17.818 0-26.741-21.543-14.142-34.142l128.662-128.662c7.81-7.81 20.474-7.81 28.284 0l128.662 128.662c12.6 12.599 3.676 34.142-14.142 34.142z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-toggle-title\" tabindex=\"0\">How is tax depreciation calculated?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<div id=\"elementor-tab-content-1063\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-1063\"><p><b>\u00a0<\/b><span style=\"font-weight: 400;\">\u00a0Depreciation is calculated annually as the <\/span><b>lower of<\/b><span style=\"font-weight: 400;\">:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">4% of the original cost of the investment property; or<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Tax Written Down Value (TWDV) at the start of the tax period.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">It is prorated if the property is held for only part of the tax period.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-toggle-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1064\" class=\"elementor-tab-title\" data-tab=\"4\" role=\"button\" aria-controls=\"elementor-tab-content-1064\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon elementor-toggle-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-closed\"><svg class=\"e-font-icon-svg e-fas-caret-right\" viewBox=\"0 0 192 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M0 384.662V127.338c0-17.818 21.543-26.741 34.142-14.142l128.662 128.662c7.81 7.81 7.81 20.474 0 28.284L34.142 398.804C21.543 411.404 0 402.48 0 384.662z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-opened\"><svg class=\"elementor-toggle-icon-opened e-font-icon-svg e-fas-caret-up\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M288.662 352H31.338c-17.818 0-26.741-21.543-14.142-34.142l128.662-128.662c7.81-7.81 20.474-7.81 28.284 0l128.662 128.662c12.6 12.599 3.676 34.142-14.142 34.142z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-toggle-title\" tabindex=\"0\">What is a realisation event?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<div id=\"elementor-tab-content-1064\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"4\" role=\"region\" aria-labelledby=\"elementor-tab-title-1064\"><p><span style=\"font-weight: 400;\">A realisation event occurs when an investment property is:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sold, disposed of, or derecognised<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fully written off<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Changed from fair value to the cost model<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subject to business cessation, dissolution, or liquidation<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transferred by an Exempt person.<\/span><\/li><\/ul><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-toggle-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1065\" class=\"elementor-tab-title\" data-tab=\"5\" role=\"button\" aria-controls=\"elementor-tab-content-1065\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon elementor-toggle-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-closed\"><svg class=\"e-font-icon-svg e-fas-caret-right\" viewBox=\"0 0 192 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M0 384.662V127.338c0-17.818 21.543-26.741 34.142-14.142l128.662 128.662c7.81 7.81 7.81 20.474 0 28.284L34.142 398.804C21.543 411.404 0 402.48 0 384.662z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-opened\"><svg class=\"elementor-toggle-icon-opened e-font-icon-svg e-fas-caret-up\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M288.662 352H31.338c-17.818 0-26.741-21.543-14.142-34.142l128.662-128.662c7.81-7.81 20.474-7.81 28.284 0l128.662 128.662c12.6 12.599 3.676 34.142-14.142 34.142z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-toggle-title\" tabindex=\"0\">What happens to depreciation when a realisation event occurs?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<div id=\"elementor-tab-content-1065\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"5\" role=\"region\" aria-labelledby=\"elementor-tab-title-1065\"><p><span style=\"font-weight: 400;\">The total depreciation claimed must be <\/span><b>added back to taxable income<\/b><span style=\"font-weight: 400;\"> (depreciation add-back). This is generally required unless intra-group relief applies or the transfer occurs within the same tax group.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-63f7499 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"63f7499\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d6644db\" data-id=\"d6644db\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-51aec0c elementor-widget elementor-widget-heading\" data-id=\"51aec0c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Final Thoughts\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-182c0bb elementor-widget elementor-widget-text-editor\" data-id=\"182c0bb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The issuance of <\/span><b>Ministerial Decision No. 173 of 2025<\/b><span style=\"font-weight: 400;\"> is a pivotal refinement in the UAE\u2019s corporate tax regime. It balances the tax and <\/span><a href=\"https:\/\/vac.wrc.mybluehost.me\/accounting-and-bookkeeping-2\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">accounting<\/span><\/a><span style=\"font-weight: 400;\"> treatment for investment properties held at fair value. This step reinforces the UAE\u2019s commitment to a transparent, business-friendly, and globally aligned tax system.<\/span><\/p><p><span style=\"font-weight: 400;\">Stay proactive: businesses with investment properties should carefully assess their eligibility, election timing, and depreciation strategy to maximise benefits and ensure compliance under this new regime.<\/span><\/p><p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>As the UAE corporate tax regime continues to evolve, the UAE Ministry of Finance has issued a significant new policy, Ministerial Decision No. 173 of 2025, on depreciation adjustments for investment properties held at fair value for Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. Pursuant to this Decision, taxpayers [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":16912,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[125],"tags":[135],"class_list":["post-16438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ministerial-decisions","tag-ministerial-decisions"],"_links":{"self":[{"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/posts\/16438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/comments?post=16438"}],"version-history":[{"count":7,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/posts\/16438\/revisions"}],"predecessor-version":[{"id":19937,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/posts\/16438\/revisions\/19937"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/media\/16912"}],"wp:attachment":[{"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/media?parent=16438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/categories?post=16438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mbbauditing.com\/staging\/8512\/wp-json\/wp\/v2\/tags?post=16438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}