Timing of Revenue Recognition
Accrual Basis
UAE Corporate Tax follows the accrual basis of accounting. Revenue is recognised in the tax period in which it is earned, regardless of when payment is received.
Advance Payments
Advance payments received before delivery of goods or services are generally not recognised as revenue until the performance obligation is satisfied.
Long-Term Contracts
For long-term contracts (e.g., construction), revenue is recognised using the percentage of completion method or over time, consistent with IFRS.