The UAE Is Offering Businesses A Tax Credit Of Up To 50 Percent On R&D Spending
The benefit is being offered as part of the first phase of the UAE's Research and Development (R&D) Tax Incentives program.
The UAE has launched the first phase of its Research and Development (R&D) Tax Incentives Program, which will see business benefiting from a non-refundable tax credit of up to 50 percent on qualifying expenditure of up to AED5 million (US$1.36 million).
The program, which aims to support the UAE’s innovation ecosystem and encourage private-sector investment in research and innovation, is part of the country’s efforts to support long-term economic growth and develop advanced industries and emerging technologies.
A statement from the UAE Ministry of Finance noted that this program’s Phase 1 has been structured to provide immediate and meaningful support to businesses undertaking genuine R&D activities. The Ministry will also monitor uptake, assess behavioral and economic impacts, and gather the data necessary to inform future policy development.
Data and insights gathered during Phase 1 of the program will inform the design of Phase 2, with further details to be announced at a later stage. As part of this next phase, the Ministry will evaluate potential enhancements, including the introduction of a refundable credit as well as the expansion of qualifying expenditure, either across the broader economy or within priority sectors.
Image courtesy the UAE Ministry of Finance.
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