Question 1

What is the UAE R&D tax credit?

Accepted Answer

The UAE R&D tax credit is a Corporate Tax incentive introduced under Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026 (linked to Federal Decree-Law No. 28 of 2025). It allows UAE Corporate Tax-resident entities to claim a non-refundable credit against their Corporate Tax or Top-up Tax liability for qualifying research and development expenditure. Phase 1 applies to tax periods commencing on or after 1 January 2026. Credit rates are tiered: 15%, 35%, and 50% depending on spend band and the number of qualifying R&D staff employed in the UAE.

Question 2

How do I get the UAE R&D tax credit?

Accepted Answer

To claim the UAE R&D credit: (1) Identify R&D activities that meet OECD Frascati-style criteria (novel, uncertain, systematic, UAE-based). (2) Apply for pre-approval from the UAE R&D Council via the Tawwer portal before or at the start of each project. (3) Maintain contemporaneous technical and financial documentation throughout the tax period. (4) File your UAE Corporate Tax return and claim the credit with the Federal Tax Authority (FTA). Engage qualified UAE tax advisors and verify all steps with Ministry of Finance and FTA publications.

Question 3

What is the UAE R&D Council and the Tawwer portal?

Accepted Answer

The UAE R&D Council is the authority responsible for pre-approving R&D projects for Corporate Tax credit purposes. The Tawwer portal is the online platform through which companies submit their project applications for pre-approval. Per publicly described rules, pre-approval is required per project before work commences, and must be renewed periodically. Without pre-approval, a company risks losing the credit even if the underlying research activity qualifies on all other criteria.

Question 4

Is the UAE R&D credit refundable?

Accepted Answer

Phase 1 of the UAE R&D credit is commonly described in public materials as non-refundable, meaning it offsets Corporate Tax or Top-up Tax liability but any excess over the liability may be carried forward to future periods rather than paid out as a cash refund. Verify the precise carryforward and refund mechanics with qualified UAE tax advisors and the Federal Tax Authority.

Question 5

How is the UAE R&D credit different from SR&ED in Canada or the US R&D credit?

Accepted Answer

All three regimes use Frascati-style eligibility tests (novelty, uncertainty, systematic approach). Key differences: (1) UAE requires mandatory pre-approval from the R&D Council before projects start, SR&ED and the US credit do not. (2) UAE uses tiered rates (15%/35%/50%) linked to staff headcount thresholds, SR&ED uses a flat enhanced deduction model; US uses an incremental credit. (3) UAE Phase 1 is non-refundable; SR&ED offers refundable credits for CCPCs. (4) UAE documentation must follow Frascati categories; SR&ED uses technological uncertainty/advancement framing. AutoDoc supports documentation workflows for all three regimes.

Understand the UAE R&D credit before your next advisor meeting

R&D Credit Briefing