UAE R&D Tax Credit
Benefit from the UAE R&D Tax Credit for your R&D investment. Eligible organisations can claim a Corporate Tax credit on qualifying research and development activities carried out in the UAE, subject to the programme requirements.
Note: The UAE R&D Tax Credit is a non-refundable Corporate Tax Credit, not a cash grant or refund.
Key Programme Information
The UAE R&D Tax Credit applies to Tax Periods commencing on or after 1 January 2026.
A minimum of AED 500,000 in Qualifying R&D Expenditure applies per R&D Project in the relevant Tax Period.
Tiered rates of up to 50% apply, based on both the level of Qualifying R&D Expenditure and the minimum average number of R&D staff, subject to all official requirements.
OVERVIEW
How the Programme Works
The UAE R&D Tax Credit Programme supports eligible organisations undertaking qualifying R&D activities in the UAE. Through the Pre-Approval process, ERDC assesses proposed R&D activities and estimated expenditure against the programme requirements.
Eligibility
Who May Apply
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.
Note: Eligibility is activity-based, not sector-based.
Qualifying Activities
What Counts as R&D
Note: Qualifying R&D Activities must be conducted in the UAE. Social sciences, humanities and the arts are excluded. The assessment is based on the five criteria below.
Novel
Aimed at new findings by creating new knowledge or new applications, rather than routine work or applying what is already established.
Creative
Based on original, non-obvious concepts and hypotheses formulated to solve the problem.
Uncertain
The outcome cannot be known in advance; the uncertainty must be scientific or technical, not commercial.
Qualifying Expenditure
What Counts as Qualifying R&D Expenditure
Note: 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 categories below does not qualify. Refer to the official Guidebook for detailed mechanics.
Staff Costs
Costs for staff directly engaged in the R&D activity, including training, subject to the official rules. Employee stock option plans are excluded.
Consumable Costs
Materials and supplies consumed in the R&D activity.
Subcontracting Fees
R&D work subcontracted to another party, subject to the official conditions.
Cost Contribution Arrangements
The Qualifying Entity’s arm’s-length share of collaborative R&D arrangements.
