Study Highlights Challenges in UAE Industrial Asset Valuation for Tax Purposes

Aug 21, 2026

78 min

Aug 21, 2026 09:30

Western Valuers and Surveyors publishes study on industrial asset valuation under UAE corporate tax

## Overview of the Study

Western Valuers and Surveyors, a Dubai-based consultancy, has released a study focusing on the valuation of industrial assets in the context of UAE corporate tax. The study is particularly relevant for finance directors, auditors, and companies with significant industrial assets.

## Key Findings

The study reveals that UAE Corporate Tax Law does not specify depreciation rates for tangible fixed assets. Instead, companies must follow International Financial Reporting Standards, which require systematic depreciation over an asset's useful life. This places the responsibility on businesses to justify their depreciation methods during audits.

## Common Issues Identified

The study identifies recurring issues in fixed asset registers. These include incomplete asset identification, lack of reconciled physical verification, and incorrect depreciation calculations. For instance, depreciation is often calculated from the invoice date rather than when the asset is operational, leading to errors.

## Importance of Accurate Valuation

Accurate asset valuation is crucial as it serves as evidence for tax authorities, auditors, and lenders. The study emphasizes the need for valuations to clearly state their basis and methodology. It also highlights the impact of technological and functional obsolescence on asset value.

## Compliance and Standards

Revised International Valuation Standards require valuers to clearly state the basis of value and justify their choice. The study notes that different valuation bases can lead to significantly different asset values.

## Recommendations

The study suggests that companies ensure thorough physical inspections and maintain detailed records to support their valuations. It also advises using competent professionals for asset valuation to avoid compliance issues.

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