UAE Introduces Interest Deduction Limits under CTGIDL1 Corporate Tax Rules

UAE, 8 April, 2025 : The UAE has introduced Interest Deduction Limitation Rules under its Corporate Tax Guide (CTGIDL1) to prevent excessive interest expense claims and align with global tax standards.

The new rules cap deductible interest expenses, aiming to curb profit shifting and ensure fair taxation. Businesses should assess their financing structures to comply with the updated guidelines.