« Back to Glossary IndexGoodwill
Goodwill is an intangible asset representing a company’s brand reputation, customer loyalty, and overall market value beyond its physical assets and financial statements. In the UAE, goodwill is an important consideration in mergers, acquisitions, and business valuations, especially when acquiring well-established brands or franchise businesses. While UAE law does not impose direct taxation on goodwill, its valuation must be accurately documented in corporate transactions to avoid disputes. Under International Financial Reporting Standards (IFRS), which are adopted in the UAE, goodwill must be tested annually for impairment rather than being amortized over time.
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