Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026 together establish a fully operational R&D Tax Credit regime under the UAE Corporate Tax Law — effective for tax periods beginning on or after 1 January 2026.
The credit represents a direct reduction in your UAE corporate tax liability — not just a deduction — making it one of the most valuable tax incentives available to qualifying UAE businesses. With credit rates reaching up to 50% on qualifying expenditure above AED 2 million, the potential tax benefit is substantial.
However, the regime is compliance-intensive. It requires mandatory pre-approval, strict UAE-nexus rules, anti-abuse provisions and a 7-year record-keeping obligation. Getting it right from the start is critical.
The R&D Tax Credit process is complex and requires early engagement. We guide businesses through every step — from initial eligibility assessment through ERDC pre-approval, documentation and final credit claim in your CT return.
Before committing resources to an R&D programme, we assess whether your activities and expenditure are likely to qualify under the UAE regime — giving you a realistic view of the potential credit and the conditions you need to meet.
Securing pre-approval from the Emirates Research and Development Council is a mandatory first step. We prepare and submit a robust pre-approval application — clearly articulating the qualifying nature of your R&D activities in the terms the ERDC expects.
The 7-year record-keeping requirement is not optional. We help you build a robust documentation framework from day one — capturing the evidence you need to defend the credit in any FTA audit, without placing an unmanageable burden on your R&D team.
We prepare and file your R&D Tax Credit claim as part of your Corporate Tax return — ensuring the credit is correctly calculated, properly disclosed and fully supported by the documentation required to withstand FTA scrutiny.
The R&D credit requires pre-approval before activities begin. We engage early — giving you the best chance of a successful application and avoiding costly mistakes that can't be undone after the fact.
Our tax team has been advising UAE businesses on Corporate Tax since its introduction in 2023. We understand the CT Law, the FTA's approach and how the R&D credit interacts with your wider tax position.
Because we manage your Corporate Tax compliance, we integrate R&D credit planning directly into your annual CT cycle — ensuring the credit is optimised alongside your broader tax position.
We build documentation frameworks that are robust enough to withstand FTA audit but practical enough for your R&D team to maintain. Compliance without unnecessary administrative burden.
We don't just interpret the rules — we help you structure your R&D programme in a way that maximises the credit while maintaining genuine commercial purpose.
Through ECOVIS International, we draw on R&D tax credit experience from member firms in jurisdictions — including the UK, Germany, Australia and others — where similar regimes have been in place for decades.
Book a free eligibility assessment — we'll tell you if your activities qualify and what you need to do to claim.