What is Depreciation Schedule?
A timetable that systematically allocates the cost of a building and its components over their estimated useful lives for accounting and tax purposes.
Description
A depreciation schedule is a detailed report that breaks down a property into its depreciable components, structure, mechanical systems, fixtures, finishes, and assigns each a useful life and annual depreciation amount. The schedule determines how much non-cash expense can be deducted each year for tax purposes.
With the UAE's 9% corporate tax in effect, companies holding investment property should prepare depreciation schedules to maximize deductions. The building structure might depreciate over 30 to 40 years using straight-line method, while fixtures and fittings depreciate over 5 to 10 years. Land is never depreciated. A professional quantity surveyor or tax advisor typically prepares the schedule.
How to interpret
A depreciation schedule is most valuable at the point of corporate tax planning, not after the fact. Have a quantity surveyor or tax advisor prepare the schedule when you first acquire a property held in a company. The schedule determines what you can deduct each year and for how long, affecting cash flow over the entire holding period.
The split between structure (long-lived, depreciated slowly) and fixtures and fittings (shorter-lived, depreciated faster) affects how much you can deduct in the early years. A more front-loaded depreciation profile provides greater tax relief when it is typically most needed, in the years after acquisition.
Dubai market context
For international investors already operating in tax jurisdictions, depreciation schedules have long been critical tools. In the UAE's new corporate tax regime, properly prepared schedules can meaningfully reduce taxable income on real estate portfolios. The Federal Tax Authority (FTA) guidelines specify acceptable depreciation methods and useful life assumptions.
Frequently asked questions
A timetable that systematically allocates the cost of a building and its components over their estimated useful lives for accounting and tax purposes.
A depreciation schedule is a detailed report that breaks down a property into its depreciable components, structure, mechanical systems, fixtures, finishes, and assigns each a useful life and annual depreciation amount. The schedule determines how much non-cash expense can be deducted each year for tax purposes.
A depreciation schedule is most valuable at the point of corporate tax planning, not after the fact. Have a quantity surveyor or tax advisor prepare the schedule when you first acquire a property held in a company.
For international investors already operating in tax jurisdictions, depreciation schedules have long been critical tools. In the UAE's new corporate tax regime, properly prepared schedules can meaningfully reduce taxable income on real estate portfolios.
Oliva feeds Depreciation Schedule into a proprietary 6-dimension score that rates eparticularly Dubai project on Financial Value, Market Dynamics, Location, Developer Trust, Risk, Macro Context, and Liquidity. This keeps comparisons consistent across hundreds of listings.
Land is never depreciated. A professional quantity surveyor or tax advisor typically prepares the schedule.
Stop reading theory. See depreciation schedule on real Dubai projects.
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This content is for educational purposes only and does not constitute investment, financial, legal, or tax advice. Yields, returns, and market data referenced are historical or estimated and are not guaranteed. Capital is at risk. Seek independent professional advice before making investment decisions. Oliva is a licensed Dubai real estate advisor (DLD Broker Card: 92025, RERA BRN: 1573501). Read our Key Risks Disclosure and Disclaimer.