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May 15, 2026

This decision sets the requirements for Taxable Persons who use a currency other than the UAE Dirham (AED) for their accounting. For Corporate Tax purposes, they must convert amounts to AED using a specific hierarchy outlined in Article 2. The primary method is the Central Bank's spot rate if practical. If not, the average monthly rate can be used, followed by the average annual rate. The chosen method must be applied consistently throughout the Tax Period, and the Taxable Person must maintain records documenting the selection rationale and any subsequent changes to the method.

This is not an Official Translation:

Determination of Conditions for Conversion of Amounts Quantified in a Currency other than the United Arab Emirates Dirham for the Purposes of the Federal Decree- Law No. 47 of 2022 on the Taxation of Corporations and Businesses

Federal Tax Authority Decision No. 13 of 2023

Issued 16 Aug 2023 – (Effective from 1 June 2023)

[GTL Notes]

The Chairman of the Board of Directors of the Federal Tax Authority has decided:

Having reviewed the Constitution,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,
Federal Decree-Law No. 28 of 2022 on Tax Procedures,
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,
Cabinet Decision No. 74 of 2023 on the Executive Regulation of Federal Decree- Law No. 28 of 2022 on Tax Procedures,
Decision of the Chairman of the Board of Directors No. 9 of 2021 on the Delegation of the Vice Chairman of the Board of Directors of the Federal Tax Authority, and
Pursuant to the approval of the Board of Directors on the policy of Determination of Conditions for Converting of Amounts Quantified in a Currency other than the United Arab Emirates Dirham, at the twenty-seventh meeting held on 22 June 2023.

Article 1 - Definitions

The words and expressions contained in this Decision shall have the same meaning assigned against each in Federal Decree-Law No. 47 of 2022 referred to above, unless the context otherwise requires.

Article 2 - Conditions for Converting of Amounts Quantified in a Currency other than the United Arab Emirates Dirham

For the purposes of Article 43 of Federal Decree-Law No. 47 of 2022 referred to above, the Taxable Person who uses a currency for accounting purposes other than the UAE Dirham shall convert such amounts to the UAE Dirham for the purposes of calculating the Corporate Tax Payable and submitting the related Tax Return, according to the following conditions: