Most jurisdictions now restrict or disallow client entertainment expenses, and the UAE is no exception to this. When you take a client out for dinner or drinks, or even paying for a joint golfing trip, this is client entertainment. You can indeed pay for this type of expense via the business, and it is still legitimate to do so.
However, when computing your taxable profits only 50% of the cost will be deductible when calculating your corporation tax bill.
For many expat-managed businesses in the UAE, you may still be tempted to pay client entertainment expenses via your company as it is better than paying for this net of income tax personally. However, as the UAE has no tax on salary or wages, this behavior should be reconsidered.
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