29 August 2026 · Safe Harbour
The AED 12 Million De-Minimis
The interest limitation includes a safe harbour: a business can always deduct net interest up to AED 12 million, and if its Net Interest Expenditure for the tax period is AED 12 million or less, the 30% EBITDA cap does not apply at all. This is why most Dubai SMEs never have to run the EBITDA calculation, their net interest is well below the threshold.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
A floor for the deduction
You can always deduct up to AED 12m.
- Net interest of AED 12m or less is fully deductible.
- The 30% cap simply does not apply.
- The cap is the higher of 30% EBITDA and AED 12m.
- Most SMEs never exceed the threshold.
Above AED 12 million
Cross the line and the cap engages.
- Above AED 12m net interest, apply the cap.
- The cap is the higher of 30% EBITDA and AED 12m.
- Excess over the cap is disallowed.
- Disallowed interest carries forward 10 years.
Frequently Asked Questions
For businesses near the AED 12m line.
Do I need the 30% calculation if my interest is small?
No. If your Net Interest Expenditure is AED 12 million or less, the 30% cap does not apply.
Is the AED 12m per company or per group?
It applies per taxable person / tax period; groups should consider how it applies to the group's position.
Is the de-minimis the deduction limit?
The limit is the higher of 30% of EBITDA and AED 12m, so AED 12m is a floor, not always the ceiling.
Can Exiloz confirm I'm under the threshold?
Yes. We confirm whether your net interest is within the safe harbour.
Are you under AED 12m?
Exiloz confirms whether the safe harbour keeps your interest fully deductible.