UAE Is Drafting New Research and Development Tax Incentives

The UAE is planning to provide its first research and development tax incentives to bolster business investment.

The UAE Ministry of Finance started a consultation Friday about R&D incentives that it can provide under its new corporation tax framework that started last year. It is considering direct grants as well as tax incentives such as credits, but notes that credits give businesses predictable outcomes and reduce costs.

• The main design features that the ministry is considering include what businesses, activities, and expenditures should qualify for the incentive. It is also asking about what forms an incentive can take and ...