Ministry of Finance Initiates Digital Public Consultation for Potential R&D Tax Incentive Implementation

The Ministry of Finance (MoF) today announced the launch of a digital public consultation to gather the views of relevant stakeholders on the potential implementation of a Research & Development (R&D) Tax Incentive under the UAE Corporate Tax law.

The consultation will be open from 19th April to 14th May 2024 with the aim 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.

Given a R&D Tax Incentive would be a new concept in the UAE and to familiarise stakeholders with the concept of R&D, a Guidance Paper is also provided as part of this consultation, which will provide stakeholders with an understanding of 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.

The Ministry of Finance welcomes clear and concise comments with, where possible, examples, data, or other information to support views being put forward in the response to this consultation. The responses must be received by 14th May 2024, and will remain confidential and will not be published.

News Source: Emirates News Agency