The UAE Ministry of Finance (MoF) has announced the launch of a digital public consultation on the potential implementation of a Research & Development (R&D) tax Incentive under the UAE corporate tax law.
The consultation will be open from April 19 to May 14, 2024.
The goal of the initiative is to understand the scope of potential R&D activities undertaken by businesses and corporations in the UAE, what activities an R&D Tax Incentive may cover, and the potential implementation and administration of an R&D Tax Incentive.
“The digital public consultation reflects the Ministry’s belief in the importance of consulting with all stakeholders including businesses operating in the UAE, advisors, service providers, institutions and investors,” the MoF said in a press release.
In order to familiarise stakeholders with the proposal, the MoF will also issue a guidance paper, which will describe the activities that may be defined as R&D, in line with the definition of R&D provided in the Organisation for Economic Co-operation and Development’s (OECD) Frascati Manual.
