Tiered credit up to 50%
A credit of up to 50% on qualifying R&D expenditure for tax periods beginning on or after 1 January 2026.
UAE R&D Tax Credit · Effective 1 Jan 2026
R&D Tax Credits Have Arrived in the UAE
A tiered credit of up to 50% on qualifying R&D expenditure now applies to UAE tax periods beginning on or after 1 January 2026. Countify, in partnership with ABA, guides innovative businesses from Emirates R&D Council pre-approval through to a robust, compliant claim.
Up to 50%
Tax credit
AED 5M
Qualifying cap
7 years
Record-keeping
Established by Cabinet Decision No. 215 of 2025 & Ministerial Decision No. 24 of 2026.
The credit at a glance
15%
Up to AED 1 million
2+
R&D staff
35%
AED 1M – AED 2 million
6+
R&D staff
50%
AED 2M – AED 5 million
14+
R&D staff
Both the spend and the headcount threshold must be met to access each tier.
Key features
What the new regime means for your business
Following an extensive consultation, the UAE has formally established its R&D tax credit regime. Here is what every innovative business needs to know.
Two thresholds, met together
Each rate tier requires both a qualifying-spend level and a minimum R&D headcount to be satisfied simultaneously.
Five Frascati criteria
Activities must meet the five OECD Frascati tests and be carried out within the UAE to qualify.
Pre-approval is mandatory
Every project must be approved by the Emirates Research & Development Council before or during the tax period.
Non-refundable credit
The credit is non-refundable — multinational groups in scope of Pillar Two should model the net impact first.
Phase 2 on the horizon
Higher caps, a refundable structure and sector-specific incentives are under active consideration.
How it works · 2026
A tiered credit of up to 50%
The level of support is determined by both your qualifying R&D spend and the size of your R&D workforce. Where only one criterion is satisfied, you qualify at the highest rate where both conditions are met.
Entry tier
15%
tax credit
- Qualifying expenditure
- Up to AED 1 million
- Minimum R&D staff
- 2 employees
Growth tier
35%
tax credit
- Qualifying expenditure
- AED 1M – AED 2 million
- Minimum R&D staff
- 6 employees
Maximum benefitMaximum tier
50%
tax credit
- Qualifying expenditure
- AED 2M – AED 5 million
- Minimum R&D staff
- 14 employees
Both thresholds apply. The expenditure and headcount requirements must be met together to access each tier — the AED 5 million cap is set by Ministerial Decision, giving policymakers room to expand the scheme as the market evolves.
Eligibility
The five Frascati tests
To qualify, a project must satisfy all five OECD Frascati criteria — and the work must be carried out within the UAE.
Conducted within the UAE
01
Novel
Aimed at new knowledge that is not already available within the field.
02
Creative
Based on original, non-obvious concepts and hypotheses.
03
Uncertain
The outcome cannot be known or readily deduced in advance.
04
Systematic
Planned, budgeted and conducted in a structured, recorded way.
05
Transferable & reproducible
Results can be reproduced and transferred to others in the field.
Compliance
Pre-approval is mandatory — plan early
The regime introduces compliance requirements that cannot be overlooked. Unlike the UK's self-assessment approach, the UAE expects you to embed governance, approval and documentation into your R&D operations from the outset.
Council approval is mandatory
Every R&D project must be approved by the Emirates Research & Development Council before any credit can be claimed.
Secured before or during the period
Approval must be obtained before or within the relevant tax period and remains valid for one year only.
No retrospective approval
Approvals cannot be granted after the fact, so early planning and annual renewal are essential.
Retain for 7 years
Records you must keep
- The project's technical objectives
- Development activities and methodologies
- Outcomes achieved
- Costs claimed
Robust, contemporaneous records are critical to demonstrating eligibility and supporting any future claim.
How we work
From pre-approval to a confident claim
A consultative, end-to-end process designed to deliver robust, compliant claims supported by clear technical and financial evidence.
- 01
Eligibility & pre-approval
We assess your activities against the five Frascati tests and secure Emirates R&D Council approval before or within the tax period.
- 02
Technical assessment
We map qualifying projects and articulate the scientific or technological uncertainties being resolved.
- 03
Cost identification
We quantify qualifying expenditure against the relevant tier and confirm the matching headcount threshold is met.
- 04
Documentation
We build contemporaneous, audit-ready evidence — objectives, methodologies, outcomes and costs — to a seven-year standard.
- 05
Claim & submission
We prepare and submit a robust credit claim supported by clear technical and financial evidence.
- 06
Pillar Two & ongoing advisory
We model the net impact for in-scope groups and embed the governance you need for future periods.
What's next
Phase 2 is already being explored
The Ministry of Finance has been clear that this is only the first stage. Businesses that move early will be best placed to benefit as the regime develops.
Phase 02
Increased expenditure limits
Headroom above the current AED 5 million qualifying cap is under active consideration.
Phase 03
Refundable credit mechanisms
A refundable structure would extend the benefit to businesses in a loss-making position.
Phase 04
Targeted industry incentives
Sector-specific support is being explored to direct innovation where it matters most.
Countify × ABA
How we support your R&D tax credit claim
Maximising the benefit takes more than identifying qualifying expenditure. We take a consultative approach — working alongside owners, finance teams, technical specialists and advisers to guide you through every stage.
Built on integrity, trust, partnership and expertise, we believe only robust claims should be submitted. Our role is to help you establish the processes, governance and evidence to support a claim with confidence.
Integrity
Trust
Partnership
Expertise
Free resource
The full UAE R&D Tax Credit claims process
A practical guide to eligibility, pre-approval, tiers, documentation and submission — everything you need to plan your 2026 claim.
uae-doc.pdf
PDF document · 2.2 MB
In partnership with ABA
Meet the specialist team
The dedicated R&D tax specialists who will guide your claim from approval to submission.
FAQ
Questions, answered.
Everything you need to know about the UAE R&D tax credit and how to claim it for 2026.
Still have questions?
Speak directly to our R&D tax specialists. The initial assessment is free.
Contact usIt applies to accounting periods beginning on or after 1 January 2026, introduced through Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026.
Start your R&D tax credit claim
Identify qualifying projects now, secure approval promptly and put strong record-keeping in place. Early planning is the key to maximising your 2026 benefit.