The UAE Corporate Tax structure permits Taxable Persons to use the realisation principle to calculate their Taxable Income, much like under many other Corporate Tax systems. As a result, income will only be subject to taxation and be eligible for a deduction when a gain or loss is realised. Realization could take place, for instance, when the pertinent asset is sold or discontinued. According to the realization principle, depending on the choice taken by the taxpaying individual, unrealized gains and losses in relation to assets or liabilities subject to fair value or impairment accounting or kept on the capital account would be excluded from the taxable income for each tax period.