How the Research and Development Tax Credit Works
A clear guide to how R&D tax relief is expected to work in the UAE.
The UAE is developing research and development tax incentives aligned with the Federal Tax Authority. This page explains how an R&D tax credit typically works: who can claim, what may qualify, and how relief is usually calculated. It is for information only; final rules will be set by the UAE authorities.
What is the R&D tax credit?
A research and development tax credit is a tax relief that allows companies to claim a reduction in tax—or sometimes a cash credit—on spending that qualifies as R&D. R&D is generally defined as work that seeks an advance in science or technology and faces scientific or technological uncertainty. In the UAE, the Federal Tax Authority will administer the scheme when it goes live.
How relief is typically given
In many jurisdictions, relief is given as an enhanced deduction or a taxable credit. The UAE may adopt a similar model. Qualifying expenditure often includes staff costs, subcontractor costs, and consumables. This page is informational; check UAE Federal Tax Authority and official sources for how R&D tax credit works once the scheme is announced.
Staying informed
R&D tax credit legislation and guidance in the UAE are still evolving. For the latest on how research and development tax relief will work, refer to the Federal Tax Authority and official government channels.
How much is R&D relief? · Who is entitled? · R&D tax legislation