UAE R&D tax credit calculator
The UAE R&D tax credit, for tax periods starting on or after 1 January 2026, is 15% of the first AED 1 million of qualifying R&D spend, 35% of the next AED 1 million and 50% of spend from AED 2 million to AED 5 million. Each slice needs an average R&D headcount of at least 2, 6 or 14. Staff costs count with a 30% uplift, and the maximum credit is AED 2 million a year.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
A 30% overhead uplift is added automatically.
For example contractors and consumables.
Shows how much you can use, as the credit is non-refundable.
Estimated R&D tax credit
AED 486,000.00
Qualifying spend: AED 1,960,000.00
| Slice | Staff | Credit |
|---|---|---|
| 15% · AED 1,000,000.00 | 2+ ✓ | AED 150,000.00 |
| 35% · AED 960,000.00 | 6+ ✓ | AED 336,000.00 |
| 50% · AED 0.00 | 14+ ✗ | AED 0.00 |
Results are estimates for general information, not tailored advice.
Credit by spend and headcount
Qualifying spend after the staff cost uplift.
| Qualifying spend | Average R&D staff | Credit |
|---|---|---|
| AED 500,000.00 | 2 | AED 75,000.00 |
| AED 1,000,000.00 | 2 | AED 150,000.00 |
| AED 2,000,000.00 | 4 | AED 150,000.00 |
| AED 2,000,000.00 | 6 | AED 500,000.00 |
| AED 3,000,000.00 | 14 | AED 1,000,000.00 |
| AED 5,000,000.00 | 14 | AED 2,000,000.00 |
| AED 8,000,000.00 | 20 | AED 2,000,000.00 |
Note the headcount cliff: AED 2 million with 4 staff earns only AED 150,000; with 6 staff it earns AED 500,000.
How the R&D credit is calculated
The credit is set by Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026. It works in slices, and each slice only counts if your average R&D headcount for the period meets its minimum.
- First AED 1 million of qualifying spend: 15%, with at least 2 R&D staff.
- AED 1 million to AED 2 million: 35%, with at least 6 R&D staff.
- AED 2 million to AED 5 million: 50%, with at least 14 R&D staff.
- Qualifying spend = R&D staff costs × 1.3 + other qualifying costs, capped at AED 5 million.
Before you can claim
Projects need pre-approval from the Emirates R&D Council, and the work must be genuine R&D: resolving scientific or technological uncertainty, not routine development. Keep project notes, timesheets and cost schedules as the work happens. Our R&D guide explains what qualifies, and our common mistakes guide covers what to avoid.
Using the credit
The credit is non-refundable: it reduces your corporate tax (and, for large groups, the domestic minimum top-up tax) but is not paid out in cash. Enter your corporate tax in the calculator to see how much of the credit you can use this period.
What the calculator leaves out
- How the average R&D headcount is measured; check the Ministerial Decision for the method.
- Any minimum spend per project and the detailed list of qualifying and excluded costs.
- Grants and other public funding, which may reduce qualifying spend.
Frequently asked questions
How much is the UAE R&D tax credit worth?
Up to AED 2 million a year: 15% of the first AED 1 million of qualifying spend, 35% of the next AED 1 million and 50% of spend between AED 2 million and AED 5 million, if your R&D headcount meets each slice's minimum.
When does the R&D tax credit start?
For tax periods starting on or after 1 January 2026, so most calendar-year companies claim it for the first time in their 2026 corporate tax return.
Is the R&D credit refundable?
Not at present. It reduces corporate tax and, for large groups, domestic minimum top-up tax, but it is not paid out in cash.
Do I need pre-approval?
Yes. R&D projects need pre-approval from the Emirates R&D Council before the credit can be claimed.
Can a small company claim the credit?
Yes, if it has an average of at least 2 R&D staff. It can then claim 15% on up to AED 1 million of qualifying spend. Our R&D advisory service can check eligibility.
R&D tax credit advisory
We handle Emirates R&D Council pre-approval, identify qualifying projects and costs, and prepare a claim that stands up to review.