Strategic Real Estate Valuation for UAE Corporate Tax Compliance

Real Estate and Corporate Tax in the UAE: Why Strategic Valuation Matters More Than Ever

As UAE-based companies prepare for their first Corporate Tax submissions, one theme continues to rise to the surface – the need for clarity and foresight when it comes to real estate holdings. Whether you’re a property-owning operating business, a family office, or an investment SPV, the way your assets are valued and reported can significantly influence your long-term tax position.

At Archers, we’ve seen a surge in valuation requests from clients who want more than just a number – they want a strategy. In this new environment, valuation has become a critical compliance tool, not just a transactional formality.

Real Estate Under the Corporate Tax Lens

The UAE Corporate Tax regime brings real estate into sharper focus. While certain categories like individual ownership and owner-occupied property may remain out of scope, most corporate-held assets – particularly investment properties – now fall under the purview of tax authorities.

This includes:

• Income from leasing or selling property
• Capital gains on disposals
• Fair value gains and losses (if accounted for under IFRS)
• Depreciation calculations tied to asset cost base

How these figures are determined often comes down to a valuation. And how that valuation is approached – timing, methodology, assumptions – can influence both your compliance status and your tax efficiency.

The Real Value of Valuation

In a world of 9% tax on profits, even small variations in reported asset values can result in meaningful cash flow impacts. That’s why many clients are no longer seeing valuations as a “tick box” requirement, but rather as an opportunity to:

• Align book values with market conditions
• Reset or establish defensible cost bases
• Support annual depreciation claims
• Justify arm’s length transfer pricing in group structures
• Prepare for potential sales, restructurings, or revaluations

Well-prepared valuations also mitigate audit risk. We’re seeing increased demand for documentation that can withstand scrutiny from both auditors and the Federal Tax Authority – particularly where elections, adjustments, or legacy pricing are involved.

Valuations for Corporate Tax: Not Just for Transactions

One misconception is that valuation only matters at the point of sale or acquisition. In reality, Corporate Tax introduces the need for proactive assessment – especially if a company is:

• Holding investment property on a fair value basis
• Making elections tied to asset values
• Booking depreciation or revaluation gains/losses
• Engaged in intra-group transactions or restructurings

In all these cases, a valuation provides a baseline – a fixed point of reference that informs reporting, planning, and compliance.

Our Approach at Archers

We work closely with tax advisors, auditors, and legal teams to deliver valuations that go beyond compliance. Our goal is to support your broader tax and financial strategy with:

• DLD- and RERA-compliant valuation reports
• RICS Red Book standards with narrative analysis
• Land and building allocation for depreciation
• Support for 31 December 2023 retrospective fair value where needed
• Guidance on election wording, assumptions, and filing integration

Final Thoughts

Corporate Tax is not just an accounting obligation – it’s an opportunity to revisit how your real estate assets are structured, reported, and positioned for the future.

If your business holds property in the UAE, it may be time to think beyond the balance sheet. Strategic valuation can help you manage risk, maximise efficiency, and prepare for what’s next.

Archers is here to help you navigate this evolving landscape.
For advisory-led property valuations or a consultation on your Corporate Tax exposure,
contact us at:
📞 +971 58 557 8987
📧 info@archersmena.com
🌐 https://www.archersmena.com