29 August 2026 · Carry Forward
Carrying Forward Disallowed Interest
Net interest you cannot deduct because of the 30% cap is not lost. It carries forward for up to ten tax periods and can be deducted in a later period where your interest is below the cap and you have headroom. You must track the carried-forward balance and use it within the ten-year window, so record-keeping is essential.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
A future deduction
Disallowed interest waits for headroom.
- Excess over the cap carries forward.
- Up to ten tax periods.
- Deducted when you are below the cap later.
- A real, valuable future deduction.
Track and use it
You only keep it if you record it.
- Maintain the carried-forward balance.
- Apply it in periods with headroom.
- Use it within the 10-year window.
- Reconcile it on each return.
Related guides
Frequently Asked Questions
For managing capped interest over time.
Do I lose interest I cannot deduct?
No. It carries forward for up to ten tax periods and can be deducted later when you have headroom under the cap.
How long can I carry it?
Up to ten tax periods from the period in which it was disallowed.
When can I use it?
In a later period where your net interest is below the cap and there is headroom to absorb it.
Can Exiloz track my carry-forward?
Yes. We maintain the balance and apply it when the headroom appears.
Never lose an interest deduction
Exiloz tracks your disallowed interest and uses it the moment headroom appears.