Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026 on the Research & Development Tax Incentive

Introduces a tiered, pre-approved R&D tax credit (15%/35%/50% depending on qualifying spend and R&D headcount, capped at AED 5 million per entity per year, minimum AED 500,000 qualifying project spend) that can offset Corporate Tax or Pillar Two top-up tax, non-refundable but carried forward indefinitely, effective for tax periods from 1 January 2026 under the framework introduced by Federal Decree-Law No. 28 of 2025. Publication date is the date of secondary reporting; exact Official Gazette dates for both instruments were not independently confirmed — flagged.

What firms should do

Yes — businesses conducting R&D should assess eligibility and apply for R&D Council pre-approval

Regulator: Federal Tax Authority
Type: Cabinet Decision
Status: Enacted
Published: 1 Apr 2026
Takes effect: 1 Jan 2026
Reference: Cabinet Decision No. 215 of 2025; Ministerial Decision No. 24 of 2026
Topic: Corporate Tax
Impact: High

Read it on the regulator's website

Found automatically on the regulator's website and summarised by AI by Arakan Lexara. Not legal advice; check the official source before relying on it.

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