The UAE Ministry of Finance has issued Ministerial Decision No. 173 of 2025, effective for tax periods beginning on January 1, 2025. This decision permits taxpayers to claim depreciation deductions on investment properties held at fair value, provided they elect the realization basis under Article 20(3) of the Corporate Tax Law. The new rule bridges the gap between fair value accounting and taxation on a realization basis, offering a 4% annual depreciation deduction. This move aims to align tax outcomes with accounting treatments, ensuring equity for corporate taxpayers.