29 August 2026 · How To
Calculating the 30% EBITDA Cap
Compute tax-adjusted EBITDA (broadly taxable income before net interest and depreciation/amortisation, excluding exempt income). Your deductible net interest is the higher of 30% of that EBITDA or AED 12 million. Compare it to your actual net interest: anything above the cap is disallowed this period and carried forward. If EBITDA is low, the AED 12m floor still protects you.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Build the cap
Follow the formula in order.
- Calculate tax-adjusted EBITDA (exclude exempt income).
- Take 30% of that EBITDA.
- Compare to the AED 12m de-minimis.
- Your cap is the higher of the two.
Find the deductible amount
Compare the cap to your actual interest.
- Deduct net interest up to the cap.
- Disallow any excess this period.
- Carry the excess forward 10 years.
- Keep the working for the FTA.
Frequently Asked Questions
For running the calculation.
What is tax-adjusted EBITDA?
Broadly taxable income before net interest and depreciation/amortisation, with exempt income excluded.
Do I use 30% or AED 12m?
You use the higher of the two as your deductible cap.
What if 30% of EBITDA is below AED 12m?
Then the AED 12m floor applies as your cap, protecting a larger deduction.
Can Exiloz run the calculation?
Yes. We compute your EBITDA, the cap and the deductible amount with full workings.
Run your interest cap
Exiloz calculates your EBITDA cap and the exact deductible interest, with workings.