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Initial Assessment
Our Chartered Tax Advisors and R&D Technical Specialists assess your business activities to determine eligibility. We explain the full claims process and ensure a smooth, efficient approach for you and your team.
R&D Tax Relief Experts Helping UAE Businesses Reclaim Innovation Costs
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What is an R&D tax credit?
The United Arab Emirates (UAE) has launched Phase 1 of a new R&D tax incentive, offering a non-refundable corporation tax credit of up to 50% on qualifying R&D expenditure capped at AED 5 million per tax period.
Who qualifies for R&D tax credits?
Under the UAE R&D Tax Credit regime, relief is available on specific types of expenditure directly linked to qualifying R&D activities carried out in the UAE. The main categories of qualifying expenditure include: Staff costs - salaries, allowances, bonuses, pension contributions, medical insurance, end-of-service benefits, and other employment-related expenses for employees directly involved in R&D. A 30% uplift is also applied to reflect associated overheads. Consumables - materials and supplies used up or transformed during the R&D process. Software costs – development tools, cloud computing, licences Subcontracted R&D - payments to UAE-based third parties carrying out R&D activities within the UAE. Cost Contribution Arrangements (CCAs) - arm’s length contributions toward shared R&D activities, where costs and risks are jointly borne. Capitalised intangible assets - certain development costs recognised as intangible assets for accounting purposes. To qualify, there is a minimum expenditure threshold of AED500,000 per project, per period.
What projects are eligible?
Qualifying R&D must aim to advance scientific or technological knowledge or develop new or improved products, processes or applications. To be eligible, the activity must be: Novel - seeking to generate new knowledge or capabilities Creative - based on original ideas, concepts, or hypotheses Uncertain - where the outcome or solution is not known in advance Systematic - planned, structured, and conducted with a clear methodology Transferable or reproducible - capable of being applied or replicated beyond the initial project.
How your company can benefit
- The credit operates on a tiered basis, meaning the more you invest in R&D, the greater the potential benefit:
- 15% on qualifying expenditure up to AED 1 million (minimum 2 R&D staff)
- 35% on expenditure between AED 1 million and AED 2 million (minimum 6 R&D staff)
- 50% on expenditure between AED 2 million and AED 5 million (minimum 14 R&D staff). To access these enhanced rates, businesses must meet both the spend thresholds and the required R&D staffing levels.
R&D refers to activities focused on advancing knowledge or developing new or improved products, processes, or services. To qualify, these activities must be novel, aiming to generate new findings; creative, involving original concepts or hypotheses; and uncertain, where the outcome or method of achieving it is not known in advance. They must also be systematic, following a structured plan or budget, and transferable or reproducible, meaning the results can be applied or replicated in other contexts.
The introduction of the UAE R&D Tax Credit regime provides a valuable incentive for businesses investing in innovation. Qualifying entities undertaking qualifying R&D activities may benefit from a reduction in their corporate tax liability or domestic minimum top-up tax obligations, with relief of up to 50% of eligible expenditure available under a tiered system, helping to significantly reduce the overall cost of innovation.
A qualifying entity, which broadly includes businesses subject to UAE corporate tax, certain free zone entities, and foreign entities operating through a permanent establishment in the UAE. However, the program excludes entities that have elected small business relief under the corporate tax law, reflecting the government’s focus on larger or innovation-driven companies with substantive R&D activity.
Why choose us?
Free Consultation
No-obligation consultation to assess eligibility and estimate your potential R&D claim value.
Chartered and Regulated
Claims prepared by chartered, regulated professionals meeting recognised industry and ethical standards.
HMRC Compliant
Fully compliant with UAE legislation and current R&D tax guidance, with future R&D tax resolutions support and planning included in our core service offering.
In-House Specialists
Dedicated in-house tax and technical specialists manage your claim end-to-end.
Our efficient process
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Application for Pre-approval
Our Chartered Tax Advisors will work with you to complete the pre-approval application process and submit this to Emirates R&D Council.
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Technical Meetings & Report Preparation
Our specialists meet key staff to review qualifying R&D work against HMRC’s criteria. These focused workshops (typically under two hours, initially) inform the preparation of detailed technical and financial reports.
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Submission & Ongoing Support
Once approved by you, we submit the claim to the Federal Tax Authority (FTA) on your behalf within 9 months of the end of the financial year in which the expenditure relates to. We will liaise directly with the FTA and respond to nay queries they may have.
Frequently
Asked
Questions
Can I submit a claim by myself?
Yes, you can submit an R&D claim yourself as part of your Corporation Tax return. However, the legislation and technical criteria are complex and errors or unsupported claims can lead to enquiries, delays or even penalties. Detailed technical justification is essential to support a robust claim. At CBTax, our Chartered Tax Advisors ensure every submission is underpinned by thorough technical analysis and careful planning. We prepare comprehensive, submission-ready reports aligned with HMRC requirements, strengthening compliance and maximising the value of your claim.
Can my accountant claim for me?
Yes, but whilst many accountants are highly capable in preparing statutory accounts and general tax compliance, R&D tax relief is a specialist area. It requires expertise in both tax legislation and the technical criteria underpinning qualifying R&D. As Chartered Tax Advisors focused specifically on R&D claims, we provide the specialist analysis and structured reporting required to ensure claims are accurate, compliant and fully optimised. Making an R&D claim is not simply a numerical exercise. It requires a detailed technical assessment of qualifying activities, clear alignment with legislation and robust supporting documentation.
My company is loss-making; can I still make a claim?
tax relief is non-refundable which means it can reduce your corporate tax liability down to zero, however, if you do not have a corporation tax liability, the credit can be offset against Top up Tax liabilities or carried forward to offset against tax liabilities in future periods.
When can I make a claim?
A claim for an R&D Tax Credit must be submitted as part of the Company’s Corporate Tax or Top‑Up Tax return for the same tax period in which the qualifying R&D expenditure was incurred.
What qualifies as R&D expenditure?
Qualifying R&D activities can arise across many areas of a business, from developing new products to achieving appreciable improvements in existing processes, systems or technologies. Often, these projects can be viewed internally as part of day-to-day operations rather than formal R&D. Our Technical Specialists apply structured, in-depth questioning to uncover qualifying activities and assess them against HMRC’s criteria, ensuring all eligible innovation is accurately identified and presented.
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