UAE R&D Tax Credit: Save Up to Dh2 Million

Apr 23, 2026

79 min

Apr 23, 2026 10:31

UAE R&D Tax Credit: A smart way to save up to Dh2 million in tax

## Understanding the UAE R&D Tax Credit

The UAE has introduced a new R&D tax credit system, allowing businesses to save up to Dh2 million. This initiative, established through Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026, offers tax credits ranging from 15% to 50% on qualifying research and development expenses.

## Eligibility Criteria

To qualify, activities must be innovative, systematic, and involve technical uncertainty. They must also be conducted within the UAE. The credit system is tiered based on expenditure and workforce size: 15% for the first Dh1 million with at least two R&D staff, 35% for the next Dh1 million with six staff, and 50% for up to Dh5 million with 14 staff. Both expenditure and staffing requirements must be met for each tier.

## Importance of Pre-Approval

Businesses must obtain pre-approval from the UAE R&D Council to claim these credits. Without this, no credits can be applied.

## Opportunities for Various Industries

Many industries, including construction, manufacturing, logistics, and technology, are already engaging in qualifying R&D activities. However, these efforts often go unclaimed due to inadequate documentation and tax alignment.

## Steps for Businesses

To maximize benefits, companies should identify qualifying activities early, maintain thorough documentation, align staffing with credit thresholds, and ensure intellectual property remains within the UAE. Records should be kept for at least seven years.

## Potential Risks

If a business restructures, exits the UAE, or fails to meet conditions within five years, credits may be reclaimed. This incentive is available across various sectors, encouraging businesses to enhance efficiency and innovation.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents