UAE Corporate Tax

Business Incurring a Loss.

• Under UAE Corporate Tax Law, if your business is experiencing a loss, you can carry forward and use it to offset future earnings.


• Businesses can carry forward losses until completely utilized.

This applies from the beginning of your first tax period.

PCC view on this provision...

Under the UAE Corporate Tax system, the ability to carry forward business losses is quite advantageous for businesses that might face temporary setbacks. It allows companies to offset losses against future profits, which can reduce taxable income in later years, potentially lowering tax liabilities. This is especially beneficial for startups or businesses in industries with fluctuating revenues.

The fact that losses can be carried forward indefinitely until fully utilized is a key feature that offers flexibility. However, it's still important for businesses to maintain proper records and consult a tax expert to ensure compliance and make the most of this provision.

Overall, the UAE’s corporate tax framework offers a level of support that can ease the burden on businesses recovering from a loss, helping them manage their financial challenges more effectively.