Can disallowed interest expenses be carried forward to future years?

Yes, any disallowed interest expenditure exceeding the statutory limit can be carried forward and deducted in up to 10 subsequent tax periods in chronological order.

Are financial institutions exempt from the interest cap rule?

Yes, licensed commercial banks, financial institutions, insurance providers, and qualifying natural persons are exempt from the General Interest Capping Rule.

United Arab EmiratesUpdated for 2026Taxes

UAE Corporate Tax General Interest Capping (30% EBITDA & AED 12M Safe Harbor) Calculator

Calculate deductible net interest expenditure limitations under Article 30 of UAE Federal Corporate Tax Law No. 47 of 2022 (higher of 30% Tax EBITDA or AED 12M De Minimis Safe Harbor) and track disallowed interest carryforwards for up to 10 years.

Corporate Income Tax Government & Business Fees Finance & Investment

Calculated Result

Maximum Deductible Net Interest Expense

18,000,000

Calculator Inputs

Tax-Adjusted EBITDA (AED)

AED

Quick select:

Net Incurred Interest Expense (AED)

AED

Quick select:

Calculated Result

Maximum Deductible Net Interest Expense

18,000,000

Disallowed Interest (Carried Forward 10 Yrs)

6,000,000

Additional Corporate Tax Impact (9%)

540,000

30% of Tax-Adjusted EBITDA

18,000,000

AED 12M Statutory Safe Harbor Floor

12,000,000

Calculation Methodology

Allowable Interest Deduction = Max(AED 12,000,000, 30% × Tax EBITDA). Disallowed Interest = Max(0, Net Interest Expense - Allowable Limit).

Financial & Statutory Disclaimer

Under Article 30 and Ministerial Decisions, net interest deduction is capped at the greater of AED 12,000,000 de minimis safe harbor or 30% of accounting Tax-EBITDA.

This calculator is designed for educational and informational purposes based on publicly declared statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimates. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Article 30 limits deductible net interest expenses to the greater of 30% of adjusted Tax-EBITDA or a statutory safe harbor threshold of AED 12,000,000 per tax period.

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United Arab Emirates

UAE Corporate Tax General Interest Capping (30% EBITDA & AED 12M Safe Harbor) Calculator

Calculator Inputs

Calculation Methodology

Financial & Statutory Disclaimer

Frequently Asked Questions

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