Website Last updated:

May 15, 2026

This article provides relief from international double taxation through a Foreign Tax Credit (FTC) mechanism. A Taxable Person can reduce their UAE Corporate Tax due by the amount of foreign income tax paid on income that is also subject to UAE Corporate Tax. The credit is limited to the amount of UAE Corporate Tax payable on the relevant foreign income, preventing the credit from reducing tax on domestic income. Any unutilised FTC resulting from this cap cannot be carried forward or back to other periods. Taxpayers must maintain necessary records.

Chapter 13 - Calculation of Corporate Tax Payable

Article 47 - Foreign Tax Credit

[GTL Notes]

Corporate Tax due under Article 3 of this Decree-Law can be reduced by the amount of Foreign Tax Credit for the relevant Tax Period.
The Foreign Tax Credit under this Decree-Law cannot exceed the amount of Corporate Tax due on the relevant income.
Any unutilised Foreign Tax Credit as a result of Clause 2 of this Article cannot be carried forward or carried back.
A Taxable Person shall maintain all necessary records for the purposes of claiming a Foreign Tax Credit.