MoF Launches Public Consultation on Implementation of R&D Incentive under UAE Tax Law

The UAE Ministry of Finance (MoF) has announced the launch of a digital public consultation to gather feedback from relevant stakeholders regarding the potential implementation of a Research and Development (R&D) Tax Incentive under the UAE Corporate Tax law.

The consultation period will run from April 19 to May 14, 2024, and can be accessed through the Ministry’s website and the UAE Government portal.

This digital public consultation underscores the Ministry’s commitment to engaging with all stakeholders, including businesses operating in the UAE, advisors, service providers, institutions, and investors.

The objective of this consultation is to assess the range of potential R&D activities conducted by businesses and corporations in the UAE, the types of activities that an R&D Tax Incentive might encompass, and the logistics of implementing and administering such an incentive.

Given that an R&D Tax Incentive would introduce a new concept in the UAE, and to familiarise stakeholders with the concept of R&D, a Guidance Paper is included as part of this consultation. This paper will outline the activities that may qualify as R&D, aligning with the definition provided in the

Organisation for Economic Co-operation and Development’s (OECD) Frascati Manual.

The UAE Ministry of Finance encourages stakeholders to provide clear and concise feedback, supplemented where possible with examples, data, or other supporting information. Responses must be submitted by May 14, 2024, and will be treated confidentially, with no publication of individual responses

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