On 18 March 2026, the United Arab Emirates issued Ministerial Decision No. 24 of 2026, setting out detailed rules for the implementation of the research and development (R&D) tax credit regime introduced under Cabinet Decision No. 215 of 2025. The regime applies to qualifying entities subject to corporate tax and/or top-up tax that conduct qualifying R&D activities in the United Arab Emirates, including eligible free zone persons and foreign juridical persons operating through a permanent establishment. Eligible expenditures include staff costs, consumable costs, subcontracting fees and cost contribution arrangement payments. The non-refundable credit is calculated on a tiered basis, at rates of 15, 35 and 50 per cent, subject to expenditure and R&D staff thresholds, with a maximum credit of AED 2 million per eligible entity or tax group per tax period or fiscal year. The regulation applies to tax periods or fiscal years commencing on or after 1 January 2026.
