The UAE's Ministry of Finance has released Ministerial Decision No. 173 of 2025, applicable to tax periods commencing January 1, 2025. This regulation enables corporate taxpayers to claim depreciation deductions on investment properties held at fair value, provided they elect the realization basis under Article 20(3) of the Corporate Tax Law.

The new provision establishes a 4% annual depreciation deduction framework. It aims to reconcile differences between fair value accounting methods and taxation approaches based on actual realization, thereby creating more equitable treatment for business taxpayers. This alignment between accounting standards and tax treatment represents a significant adjustment to the UAE's corporate tax framework for property investments, with implications for Italian investors holding real estate assets in the Emirates.