UAE Research & Development Tax Credit

The United Arab Emirates (UAE) has introduced TAWWER, a digital platform operated by the Emirates Research and Development Council (ERDC) to facilitate applications under the UAE Research and Development (R&D) Tax Credit regime.

Applicable to tax periods or fiscal years commencing on or after 1 January 2026, the regime provides eligible businesses with an opportunity to claim a non-refundable Corporate Tax credit on qualifying R&D expenditure, subject to prescribed conditions.

Businesses undertaking research, engineering, technological development or other potentially qualifying R&D activities in the UAE should assess their eligibility and prepare for the applicable application and compliance requirements.

Key features of the R&D Tax Credit

  • Effective date: Tax periods or fiscal years commencing on or after 1 January 2026
  • Eligible activities: Qualifying R&D in natural sciences, engineering or technology
  • Minimum expenditure: AED 500,000 of qualifying expenditure per R&D project per relevant period
  • Potential credit rates: 15%, 35% or 50%, subject to qualifying expenditure, R&D staffing and other conditions
  • Pre-approval: Required for each R&D project for which a credit is claimed
  • Application platform: TAWWER, operated by ERDC
  • Final tax claim: Made through the relevant Corporate Tax Return, subject to applicable requirements

Which businesses may qualify?

The regime is not limited to businesses traditionally associated with scientific research. Depending on the nature of their activities, potentially eligible projects may arise in sectors such as:

  • Manufacturing: Developing new materials, products or production processes.
  • Technology and software: Resolving complex technological uncertainties or developing novel technical solutions.
  • Engineering: Designing and testing prototypes or addressing unresolved technical challenges.
  • Healthcare and life sciences: Conducting scientific experimentation or developing new formulations.
  • Energy and sustainability: Developing or testing new energy, environmental or resource-efficiency technologies.

Eligibility depends on whether the activities satisfy the prescribed statutory criteria. These include novelty, creativity, scientific or technological uncertainty, a systematic approach, and transferability and/or reproducibility. Routine operational activities, standard product development and ordinary software maintenance do not automatically qualify.

How does the process work?

Key stages of the TAWWER process.

  1. Access TAWWER: Obtain access through UAE PASS and secure the necessary organisational authorisation.
  2. Apply for pre-approval: Submit the project details, technical justification, R&D team information, estimated expenditure and supporting documentation.
  3. ERDC assessment: Respond to any requests for additional information and obtain the relevant determination.
  4. Confirm expenditure: Confirm actual qualifying activities, expenditure and staffing through TAWWER within the applicable timeframe.
  5. Claim the credit: Submit the R&D Tax Credit claim through the relevant Corporate Tax Return, subject to the applicable conditions.

Pre-approval does not automatically guarantee entitlement to a tax credit. The final claim remains subject to the applicable legislative requirements and FTA administration.

Important deadlines

The applicable pre-approval deadline depends on the end date of the relevant tax period or fiscal year.

Tax period or fiscal year Pre-approval application deadline
Ending on or before 31 December 2026 Within 40 business days from the end of the relevant period
Ending after 31 December 2026 On or before the last day of the relevant period

The expenditure confirmation process is generally required within six months after the end of the relevant tax period or fiscal year, subject to the applicable requirements.

Businesses should verify the relevant deadlines and procedural requirements against the latest official ERDC guidance.

How we can help

At Gateley Middle East, we can support your business throughout the UAE R&D Tax Credit process, including:

  • Eligibility assessments: Identifying potentially qualifying R&D projects and evaluating them against the statutory criteria.
  • Expenditure reviews: Assessing potentially qualifying costs, project-level thresholds and relevant exclusions.
  • TAWWER applications: Assisting with project documentation, application preparation and responses to information requests.
  • Expenditure confirmation: Supporting the reconciliation of approved projects with actual activities, expenditure and staffing.
  • Corporate Tax compliance: Assisting with the preparation of the subsequent R&D Tax Credit claim and related documentation.
  • Ongoing governance: Helping establish appropriate processes for project tracking, cost allocation and record retention.

Early preparation can help businesses identify potentially eligible projects, address documentation gaps and coordinate their R&D, finance and tax functions ahead of the relevant deadlines.