The UAE Finance Ministry has introduced Ministerial Decision No. 173/2025, enabling firms to deduct depreciation on investment properties measured at fair value, starting January 1, 2025. This move aligns tax practices with international standards and enhances strategic tax planning, fostering tax neutrality and equity in the UAE’s real estate sector. Companies opting for the realisation basis can now claim depreciation up to 4% of the property’s original cost or written-down value. The decision introduces irrevocable election rules and claw-back provisions, impacting how businesses report property asset values accurately for tax purposes.