Everyday expenses
Is my mobile phone and internet a business expense?
Usually safe if you keep the documents
The basic rule
A cost counts when it is purely for the business. For a phone used for both work and private life, take off only the business part, or a fair share worked out in a reasonable way.
When it is different
- A separate business SIM or a contract in the company's name used for work is generally fully deductible.
- Family plans and home internet shared with the household are mixed: keep only a reasonable business share.
- The handset itself is equipment: see the entry on laptops and equipment.
Documents to keep
- Monthly bills, ideally in the company's name
- A note of how you estimate the business share for shared lines
- Tax invoices showing VAT if you are registered for VAT
How safe is it?
Usually safe if you keep the documents Small amounts and a reasonable split rarely cause problems; a family plan claimed at 100% can.
When to ask a professional
Usually no confirmation needed for a reasonable split. Ask if a large family plan is paid by the company. 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)
- Federal Decree-Law No. 8 of 2017 on Value Added Tax (consolidated) — Art. 54 and 55
General information, not tax advice. Your situation may differ.
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