The Ministry of Finance has launched a public consultation to gather feedback on the potential application of tax incentives related to research and development activities in the UAE. This consultation will run from April 19 to May 14, 2024, and is open to all stakeholders, including companies, advisors, service providers, institutions, and investors.
The purpose of this consultation is to gain insights into the research and development activities conducted by companies and institutions in the UAE and identify areas that could benefit from tax incentives related to research and development. Stakeholders are encouraged to share their opinions on the implementation and management of tax incentives in this context.
To help participants understand the concept of research and development and the specifics of related tax incentives, a guidance paper will be provided as part of the consultation. This will align with the definition of research and development outlined in the OECD’s “Frascati” Guide.
The Ministry of Finance is seeking clear and concise feedback on its website, including examples, data or information that support views expressed in response to the consultation. All responses must be submitted by May 14th, 2024, with confidentiality being maintained by the Ministry. The aim is for stakeholders to contribute constructively towards shaping potential tax incentives for research and development activities in the UAE.
The general digital consultation signifies the Ministry’s commitment to engaging with stakeholders as it seeks to create an enabling environment for businesses operating within its jurisdiction.
