UAE MoF Financial Legislation

UAE Cabinet Decision 215 of 2025 on R&D Tax Credit

UAE Cabinet issued Decision No. 215 of 2025 establishing an R&D Tax Credit framework under Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses. Qualifying entities engaged in R&D activities may claim tax credits against Corporate Tax and/or Top-up Tax liabilities. The decision defines qualifying entities, activities, and expenditure criteria, with credits calculated as a percentage of Qualifying R&D Expenditure.

UAE Ministerial Decision 24/2026 on R&D Tax Credit Implementation

The UAE Ministry of Finance published Ministerial Decision 24/2026 implementing R&D Tax Credit rates under Cabinet Decision 215/2025. The decision establishes three-tier tax credit rates of 15%, 35%, and 50% based on qualifying R&D expenditure thresholds ranging from AED 1 million to AED 5 million, with minimum R&D staff requirements of 2, 6, and 14 FTE respectively per qualifying entity or tax group.

Ministerial Decision 336 Designates VARA as Competent Authority for Corporate Tax Qualifying Activities

The UAE Ministry of Finance issued Ministerial Decision 336 of 2025 designating the Dubai Virtual Assets Regulatory Authority (VARA) as the Competent Authority for corporate tax purposes related to qualifying activities of Wealth and Investment Management Services and Fund Management Services. This designation applies to entities operating under Dubai Law No. 4 of 2022 regulating virtual assets.

Exempting International Sports Entities from UAE Corporate Tax

The UAE Cabinet issued Decision No. 1 of 2026 exempting qualifying International Sports Entities, Sports Entities, and Ancillary Entities from Corporate Tax under Federal Decree-Law No. 47 of 2022. The exemption applies to entities recognized by the Ministry of Sports or Competent Authority that meet conditions including exclusive use of income for sports objectives and no distribution to personal shareholders.