The interest shall be deemed profit received by the creditor as payment for disposal of property or funds. Interest payments include the following possible types:
- Payment for use of goods or property, services or works obtained in credit;
- Payment for use of money, for deposit account;
- Payment for use of money to be repaid in installments;
- Payment for use of assets under lease agreement;
- Remuneration paid for lease of real estate.
Interest shall be accrued subject to principal amount or value of the goods and terms of repayment of the deposit or credit.
The interest accrued on deposits depends on current interest rates and terms of the contract with the bank or company.
There are no requirements with regard to taxation of any type of income received in the form of interest in the United Arab Emirates. This applies both to payments of interest within the country and to payments abroad. Furthermore, this rule applies irrespective of whether or not the interest is paid to a resident or non-resident of the United Arab Emirates.
