Fines and donations
Are charity donations or zakat deductible?
Usually safe if you keep the documents
The basic rule
Donations, grants or gifts to an organisation that is not a Qualifying Public Benefit Entity are not taken off the profit.
When it is different
- Check the current official list of Qualifying Public Benefit Entities on the date of the donation: entities can be added or removed.
- Sponsorship with real advertising in return may be a marketing cost rather than a donation; it depends on the facts.
- Personal zakat paid from your own funds is personal.
Documents to keep
- Receipt from the entity
- A copy or screenshot of the official list showing the entity on the date
How safe is it?
Usually safe if you keep the documents Low if the entity is on the list and you have the receipt.
When to ask a professional
Ask for sponsorships or large donations. 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. 33(1) and Art. 9
- Cabinet Decision No. 37 of 2023 on Qualifying Public Benefit Entities (with the current schedule) — Art. 2 and annexed schedule
General information, not tax advice. Your situation may differ.
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