Is the Corporate Tax itself deductible?

Enter the total amount of expenses not incurred solely for Business purposes during the Tax Period.103 If an expenditure is incurred for more than one purpose, enter the portion of the expenditure that cannot be deducted, i.e. the portion of the expenditure which was not incurred wholly and exclusively for Business purposes.104 For further information, see the Corporate Tax Guide on Determination of Taxable Income. 9.1.8 Other non-deductible expenditure Enter the total amount of other non-deductible expenses incurred during the Tax Period. This should include, but not be limited to: • fines and penalties levied by a statutory body or government,105 • bribes or other illicit payments,106 • Corporate Tax imposed on you,107 • Input Value Added Tax incurred by you that is recoverable,108 and • tax on income imposed on you outside the UAE.109 For further information, see the Corporate Tax Guide on Determination of Taxable Income. 9.1.9 Description of the nature of the other non-deductible expenditure Provide a description and/or the category(ies) of non-deductibility, if applicable. 9.2. Adjustments for Interest expenditure The deductibility of Interest may be limited, either in terms of the General Interest Deduction Limitation Rule or the Specific Interest Deduction Limitation Rule, which may require adjustments to Taxable Income. The General Interest Deduction Limitation Rule applies to all Taxable Persons, other than the following Persons:110 103 Article 28(2)(a) of the Corporate Tax Law. 104 Article 28(3) of the Corporate Tax Law. 105 Article 33(2) of the Corporate Tax Law. 106 Article 33(3) of the Corporate Tax Law. 107 Article 33(6) of the Corporate Tax Law. 108 Article 33(7) of the Corporate Tax Law. 109 Article 33(8) of the Corporate Tax Law. 110 Article 30(6) of the Corporate Tax Law. Corporate Tax Guide | Tax Returns | CTGTXR1 79

Article 28 – Deductible Expenditure 1. Expenditure incurred wholly and exclusively for the purposes of the Taxable Person’s Business that is not capital in nature shall be deductible in the Tax Period in which it is incurred, subject to the provisions of this Decree-Law. 2. For the purposes of calculating the Taxable Income for a Tax Period, no deduction is allowed for the following: a. Expenditure not incurred for the purposes of the Taxable Person’s Business. b. Expenditure incurred in deriving Exempt Income. c. Losses not connected with or arising out of the Taxable Person’s Business. d. Such other expenditure as may be specified in a decision issued by the Cabinet at the suggestion of the Minister. 3. If expenditure is incurred for more than one purpose, a deduction shall be allowed for: a. Any identifiable part or proportion of the expenditure incurred wholly and exclusively for the purposes of deriving Taxable Income. b. An appropriate proportion of any unidentifiable part or proportion of the Federal Decree-Law No. 47 of 2022 and its amendments – Unofficial translation (as published by the Ministry of Finance) 36 expenditure incurred for the purposes of deriving Taxable Income that has been determined on a fair and reasonable basis, having regard to the relevant facts and circumstances of the Taxable Person’s Business.