Non-deductible expenses under UAE Corporate Tax laws includes the following:
- Donations, grants, or gifts made to organizations that are not Qualifying Public Benefit Entities. Donations or Zakat paid to such entities are only deductible if they qualify as a Qualifying Public Benefit Entity.
- Fines and penalties, except amounts awarded as compensation for damages or breach of contract.
- Bribes or other illicit payments.
- Dividends, profit distributions, or similar benefits paid to an owner of the Taxable Person.
- Amounts withdrawn from the business by a natural person who is a Taxable Person or a partner in an Unincorporated Partnership.
- Corporate Tax
- Recoverable input Value Added Tax
- Tax on income imposed outside the UAE
- Contributions made by employers to a private pension fund in respect of its employees which are not paid in the Tax Period, or are in excess of 15% of the employee’s total remuneration in the relevant Tax Period.