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6.1. Depreciation and Amortization

When calculating UAE taxable income, depreciation allowances are normally given for the depreciable assets of an enterprise. However, given that no corporate income tax is levied for most industries, depreciation for tax purposes is usually not needed.

The following provides the standard rates for various asset types, although reasonable alternate rates may also be accepted:

Buildings 4%
Roads and Bridges 4%
Tanks, Pipelines, Jetties and wharves 5%
Plant and Machinery 10%
Office Furniture and Equipment 15%
Automobiles and Motorcycles 33.33%
Trucks and Trailers  25%
Marine craft 7.5%
Airplanes 25%
Drilling and Clean-out Tools 33.33%
Service Replacement Equipment 25%
Refining Plant Pipelines and Small Tanks 10%
Intangible Assets 10%