How the Net Interest Expenditure is calculated under the UAE Corporate Tax law:

The net interest expenditure shall be calculated in the following manner: -

  • Net Interest expenditure based on the Financial Statements (i.e. Interest expenditure less Interest income)

Less: Interest expenditure disallowed under any other provision of the CT Law
Less: Net Interest expenditure related to grandfather debts
Less: Net Interest expenditure related to Qualifying Infrastructure Projects
Add: Interest expenditure carried forward from previous 10 tax periods year