UAE depreciation rules: real estate’s tax edge

Shabbir Moonim’s view on how updated depreciation rules enhance real estate tax planning | Integrator Media

Recent updates to UAE depreciation rules allow property owners using fair-value accounting to claim annual tax deductions of up to 4 percent of the original cost or written-down value, improving tax efficiency without sacrificing market-reflective reporting. Previously, fair-value properties could not generate depreciation deductions for tax purposes, creating a mismatch between accounting and tax outcomes. The new guidance removes this friction, aligning financial reporting with tax treatment and boosting cash flow by lowering taxable income. For real estate investors and portfolio allocators, this change provides a cleaner comparative model against other asset classes, supports strategic capital management, and enhances predictability in long-term planning.