FrequentlyAsked Questions

ERDC strengthens the UAE’s R&D ecosystem by supporting strategic frameworks, national coordination, partnerships, guidance and initiatives that help research and development create practical, economic and national value.

The UAE R&D Tax Credit is an incentive applicable to Qualifying Entities conducting Qualifying R&D Activities in the UAE.

ERDC assesses Pre-Approval applications through TAWWER. The Federal Tax Authority administers the tax-credit claim through the Corporate Tax Return.

No. ERDC assesses R&D projects and issues Pre-Approval outcomes. The subsequent claim is submitted through the Corporate Tax Return and administered by the Federal Tax Authority.

It applies to Tax Period or Fiscal Year commencing on or after 1 January 2026.

A Qualifying Entity must be a Taxable Person under the Corporate Tax Law conducting Qualifying R&D Activities in the UAE. For Tax Groups, the Parent Company applies on behalf of the group.

Qualifying R&D Activities must be conducted in the UAE and meet the five criteria: Novel, Creative, Uncertain, Systematic, and Transferable and/or Reproducible.

Qualifying R&D Activities must fall within a field of natural sciences, engineering, or technology. Activities in the social sciences, humanities and the arts are excluded.

No. Eligibility is assessed based on the R&D activity and whether it meets the official criteria, not simply on the organisation’s sector.

Yes. A minimum of AED 500,000 in Qualifying R&D Expenditure applies per R&D Project per Tax Period or Fiscal Year.

Tiered rates of up to 50% apply, based on both the level of Qualifying R&D Expenditure and the number of R&D staff, subject to all official requirements. The expenditure amount alone does not determine the rate.

The qualifying categories are Staff Costs, Consumable Costs, Subcontracting Fees and Cost Contribution Arrangements, subject to the official conditions.

Grant-funded or reimbursed expenditure does not qualify. Intra-group recharges are not Qualifying R&D Expenditure for Tax Groups, and expenditure outside the four qualifying categories does not qualify. Employee stock option plans are excluded from Staff Costs.

TAWWER is ERDC’s digital platform for the UAE R&D Tax Credit. It is used to submit R&D projects for Pre-Approval, track applications, respond to Requests for Information and receive ERDC's outcomes.

An individual authorised to act on behalf of the Qualifying Entity signs in using UAE PASS and requests access to the organisation. The request must be approved by the Qualifying Entity’s authorised signatory registered with the Federal Tax Authority. The individual acts only as a representative; the rights, obligations and tax credit belong to the Qualifying Entity.

Once access to TAWWER has been authorised, select New Application, complete the required organisation, project, research, execution and budget sections, review the declarations and submit the application for ERDC assessment.

Applicants provide organisation and project information, research objectives, methodology, scientific or technological uncertainties, the project workplan, R&D team information, estimated budget, Qualifying R&D Expenditure and supporting documents.

ERDC reviews the project against the five R&D criteria and assesses the estimated Qualifying R&D Expenditure. The application may be approved, approved in part or rejected, and ERDC may issue a Request for Information where clarification is needed.

Review time depends on the application and the information provided. Applicants can monitor the application status through TAWWER. No review duration or decision date should be assumed unless officially confirmed.

The applicant will receive a Request for Information through TAWWER and must submit the requested clarification or supporting documents within the applicable response window. A Request for Information is not a rejection.

Applications cannot be freely edited after submission. If ERDC requires clarification or further evidence, the applicant can provide the requested updates through the Request for Information process in TAWWER.

No. Pre-Approval is required to proceed through the UAE R&D Tax Credit journey.

The subsequent tax-credit claim is submitted through the Corporate Tax Return and administered by the Federal Tax Authority, subject to the applicable official requirements.

No. The final claim is submitted through the Corporate Tax Return and administered by the Federal Tax Authority.

Supporting records relating to the Qualifying R&D Activities and Qualifying R&D Expenditure must be retained for seven years.

The UAE’s National R&D Priorities define key areas of focus for research and development that support national goals and guide efforts towards areas of strategic importance.

They were established to align research and development efforts with the UAE’s strategic objectives and support innovation that creates meaningful impact.

They focus on key areas where research and development can address national challenges, create opportunities, and contribute to the UAE’s future development.

They help guide research activities, encourage collaboration, and support the development of innovative solutions aligned with the UAE’s priorities.