A digital public consultation has been launched by the UAE Ministry of Finance to collect opinions from different stakeholders on the potential introduction of a research and development (R&D) tax incentive under UAE corporate tax legislation.
Running from April 19th through May 14th, 2024, this consultation is going to ask for people's opinions on how far an R&D tax incentive could go, what kinds of things it could cover, and how it could be administered and implemented in the United Arab Emirates.
This digital consultation underscores the Ministry's commitment to engaging with all relevant stakeholders, including businesses operating within the UAE, advisors, service providers, institutions, and investors. Given that an R&D tax incentive would introduce a novel concept to the UAE landscape, the Ministry has provided a guidance paper as part of the consultation process. This document aims to elucidate the definition of R&D activities, drawing from the criteria outlined in the Organisation for Economic Co-operation and Development’s (OECD) Frascati Manual.
Stakeholders are encouraged to provide clear and concise feedback, accompanied by examples, data, or additional information to bolster their viewpoints. All responses are to be submitted by May 14, 2024, and will be treated with confidentiality, ensuring that sensitive information remains undisclosed to the public.
By initiating this consultation, the Ministry seeks to foster a deeper understanding of R&D initiatives and their potential fiscal implications within the UAE's economic landscape. Through collaborative engagement with stakeholders, the Ministry endeavors to craft a robust framework for the implementation of an R&D tax incentive that aligns with the unique needs and dynamics of the UAE's business ecosystem.
