The UAE Government recognizes the importance of the wider benefits created by Research and Development (‘R&D’) in driving innovation and growing its knowledge base as part of creating a vibrant and diverse economy.

The UAE Government is therefore considering possible mechanisms to achieve this objective and a support system with a broad reach across the economy through a potential R&D Tax Incentive under the Corporate Tax Law.  

The Ministry of Finance is seeking inputs from stakeholders into the design process of the potential R&D Tax Incentive and your views will help us to develop the final design of the potential R&D Tax Incentive.

This consultation paper is split into the following documents and sections:

Consultation questionnaire

This includes a range of questions to understand more about the way in which R&D is currently and/or anticipated to be conducted in your business, what the potential R&D Tax Incentive should cover and how the potential R&D Tax Incentive should be delivered and administered. The consultation questionnaire can be found here.

Guidance Paper

Alongside the consultation questionnaire a separate Guidance Paper has been prepared which provides details on the internationally recognized definition of R&D provided in the Organisation for Economic Co-operation and Development’s (‘OECD’) Frascati Manual. This can be found here.

The information provided in this consultation paper does not constitute tax, legal or any other professional advice and should not be used or relied upon to make individual or business decisions, as it does not represent the final policy position of the Ministry of Finance or the UAE Government and may be subject to change during the policy evaluation process.

The Ministry of Finance welcomes comments on this consultation by 14 May 2024 and would appreciate clear and concise comments with, where possible, examples, data or other information to support views being put forward in the response to this consultation.