The UAE Ministry of Finance has proposed a Research and Development (R&D) Tax Incentive under UAE Corporate Tax: an expenditure-based refundable tax credit worth 30% to 50% of qualifying R&D costs, scaled by a business's UAE revenue and headcount. It is proposed to apply to tax periods starting on or after 1 January 2026, for R&D activity that meets the OECD Frascati Manual definition and is carried out inside the UAE.
As of this writing, the incentive is still a proposal pending final Cabinet or Ministerial Decision - businesses should track eligible costs now, but must verify final rates, thresholds, and effective dates with the FTA or MoF once legislation is formally published.
Read the full breakdown, including who can claim it, what counts as qualifying expenditure, and how it interacts with the separate proposed Refundable Tax Credit for High-Value Employment Activities, here:
https://qasproglobal.com/uae-corporate-tax-rd-incentive-2026/
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