Tools · CORPORATE TAX · PROPERTY
Investment property 4% tax depreciation calculator
Buildings held at fair value now earn a 4% tax deduction a year. Enter the building cost and dates to get the Opening Value, the full schedule and the add-back if you sell.
Years held before
3.00
Opening Value
AED 12,320,000
Full-year deduction (4%)
AED 560,000
Tax saved a year at 9%
AED 50,400
Add-back on sale (2030)
AED 3,360,000
Opening Value is the cost less 4% for each calendar year held before the first tax period starting on or after 1 January 2025: AED 14,000,000 − AED 1,680,000 = AED 12,320,000. Each period deducts the lower of 4% of cost and the written-down value, so the deductions run for 22 periods. Selling at the end of 2030 adds back the AED 3,360,000 claimed (about AED 302,400 of tax at 9%), on top of the tax on the realised gain. Prorate the final period if the sale is mid-year. Assumes consecutive 12-month tax periods.
Deduction schedule
| Tax period | Deduction | Tax saved (9%) | Written-down value |
|---|---|---|---|
| 1 Jan 2025 – 31 Dec 2025 | 560,000.00 | 50,400.00 | 11,760,000.00 |
| 1 Jan 2026 – 31 Dec 2026 | 560,000.00 | 50,400.00 | 11,200,000.00 |
| 1 Jan 2027 – 31 Dec 2027 | 560,000.00 | 50,400.00 | 10,640,000.00 |
| 1 Jan 2028 – 31 Dec 2028 | 560,000.00 | 50,400.00 | 10,080,000.00 |
| 1 Jan 2029 – 31 Dec 2029 | 560,000.00 | 50,400.00 | 9,520,000.00 |
| 1 Jan 2030 – 31 Dec 2030 | 560,000.00 | 50,400.00 | 8,960,000.00 |
| 1 Jan 2031 – 31 Dec 2031 | 560,000.00 | 50,400.00 | 8,400,000.00 |
| 1 Jan 2032 – 31 Dec 2032 | 560,000.00 | 50,400.00 | 7,840,000.00 |
| 1 Jan 2033 – 31 Dec 2033 | 560,000.00 | 50,400.00 | 7,280,000.00 |
| 1 Jan 2034 – 31 Dec 2034 | 560,000.00 | 50,400.00 | 6,720,000.00 |
| 1 Jan 2035 – 31 Dec 2035 | 560,000.00 | 50,400.00 | 6,160,000.00 |
| 1 Jan 2036 – 31 Dec 2036 | 560,000.00 | 50,400.00 | 5,600,000.00 |
| 1 Jan 2037 – 31 Dec 2037 | 560,000.00 | 50,400.00 | 5,040,000.00 |
| 1 Jan 2038 – 31 Dec 2038 | 560,000.00 | 50,400.00 | 4,480,000.00 |
| 1 Jan 2039 – 31 Dec 2039 | 560,000.00 | 50,400.00 | 3,920,000.00 |
| 1 Jan 2040 – 31 Dec 2040 | 560,000.00 | 50,400.00 | 3,360,000.00 |
| 1 Jan 2041 – 31 Dec 2041 | 560,000.00 | 50,400.00 | 2,800,000.00 |
| 1 Jan 2042 – 31 Dec 2042 | 560,000.00 | 50,400.00 | 2,240,000.00 |
| 1 Jan 2043 – 31 Dec 2043 | 560,000.00 | 50,400.00 | 1,680,000.00 |
| 1 Jan 2044 – 31 Dec 2044 | 560,000.00 | 50,400.00 | 1,120,000.00 |
| 1 Jan 2045 – 31 Dec 2045 | 560,000.00 | 50,400.00 | 560,000.00 |
| 1 Jan 2046 – 31 Dec 2046 | 560,000.00 | 50,400.00 | 0.00 |
Disclaimer
Illustrative figures computed in your browser. Nothing is uploaded, stored or sent anywhere. Not accounting or tax advice; verify treatment with your advisor.