Everyday expenses

Can my company deduct my car, fuel and parking?

Depends on the details: keep good documents

In short: Partly, in most cases. For Corporate Tax, the business share of your car costs can be taken off your profit; the private share cannot. For VAT, you usually cannot get back the VAT on a car that can also be used privately. Keep a log of your business trips.

The basic rule

Corporate Tax only lets you take off costs that are purely for the business (official term: “wholly and exclusively” for the business). When a cost is partly business and partly private, only the business part counts: the part you can clearly identify, or a fair share worked out in a reasonable way.

When it is different

A vehicle used only for the business (for example a delivery van, or a car kept at the business premises and never used privately) can be fully deductible.
Fuel, Salik tolls and parking for a documented business trip are business costs; the daily commute and family use are not.
If the car is owned by you personally and the company reimburses business kilometres at a reasonable rate, the reimbursement is a business cost when it is supported by a mileage log.
VAT: input tax on buying, renting or leasing a car that is available for personal use is not recoverable. Vehicles outside the VAT definition of a motor vehicle (for example trucks and goods vans not designed to carry passengers), licensed taxis and cars used in a rental business are outside this block.

Documents to keep

Mileage log (date, destination, purpose, kilometres)
Fuel, parking and toll receipts
Purchase, lease or rental contract
A written basis for the business percentage you use

How safe is it?

Depends on the details: keep good documents A 100% business claim for a single car that is also the family car is a common audit point. A reasoned percentage backed by a log is much easier to defend.

When to ask a professional

Have the percentage confirmed if the car is a large cost, if you want to claim more than a modest business share, or if you plan to recover VAT on it. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.

If you pay no Corporate Tax this year (Small Business Relief): If you use Small Business Relief this year, you pay no Corporate Tax anyway, so this cost does not change your tax for that year. Keep the documents anyway: they back up your income figure, and they matter if you stop qualifying later.

Check it with the free calculator: Small Business Relief calculator →

Sources

Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 28(1) and 28(3)
Executive Regulation of the VAT Decree-Law (Cabinet Decision No. 52 of 2017, as amended up to 2025) — Art. 53(1)(b), 53(2)(b) and 53(4)
FTA Corporate Tax Guide: Determination of Taxable Income (CTGDTI1) — Section on expenditure incurred for more than one purpose

Last verified: 19 October 2026

General information, not tax advice. Your situation may differ.

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