Tools · CORPORATE TAX · FINANCING
Interest deduction cap calculator (30% EBITDA)
Two prongs, one cap: 30% of tax-EBITDA or twelve million dirhams, whichever is greater. Enter both numbers and see which one binds — and what carries forward.
Binding cap — 30% of EBITDA prong
AED 15,000,000
Interest deductible
AED 15,000,000
Disallowed — carries 10 periods
AED 5,000,000
The cap is the greater of 30% of adjusted EBITDA (AED 15,000,000) or AED 12,000,000. Disallowed interest carries up to ten periods, inside those years' own caps. Outside this computation: loans agreed before 9 December 2022 (grandfathered), banks and insurers are excluded — and the connected-person loan rules run before this cap does.
Disclaimer
Illustrative figures computed in your browser. Nothing is uploaded, stored or sent anywhere. Not accounting or tax advice; verify treatment with your advisor.