NaqoodTAWWER Is Live: How UAE Businesses Get Pre-Approval for the R&D Tax Credit
The Emirates Research and Development Council (ERDC) has opened TAWWER, its digital platform for the UAE R&D Tax Credit. TAWWER is now the single channel for submitting R&D projects for pre-approval, and the ERDC website explains how to sign in and apply.
This matters because pre-approval is not optional. Under Ministerial Decision No. 24 of 2026, a business must obtain ERDC pre-approval for every R&D project on which it claims the credit. The credit itself applies to tax periods starting on or after 1 January 2026, so businesses doing R&D this year can now start the process.
If you are new to Corporate Tax, our UAE Corporate Tax guide covers the basics, including the 9% rate and the AED 375,000 threshold.
What is the UAE R&D Tax Credit?
The credit was created by Cabinet Decision No. 215 of 2025 and switched on by Ministerial Decision No. 24 of 2026, which the Ministry of Finance announced in March 2026. It is a percentage of your Qualifying R&D Expenditure that you offset against your Corporate Tax (or Top-up Tax) bill. It is non-refundable, but unused credit can generally be carried forward, subject to ownership continuity rules.
Rates are tiered by both spend and the average number of R&D staff:
| Qualifying R&D Expenditure per tax period | Minimum average R&D staff | Credit rate on that portion |
|---|---|---|
| First AED 1 million | 2 | 15% |
| Above AED 1 million up to AED 2 million | 6 | 35% |
| Above AED 2 million up to AED 5 million | 14 | 50% |
You need to meet both the spend and the staff threshold for a rate. If you miss the staff count, the rate drops to the highest band where both are met. Each R&D project also needs at least AED 500,000 of Qualifying R&D Expenditure in the tax period, and AED 5 million is the cap on qualifying spend.
Who can claim, and who cannot?
The claimant must be a Taxable Person under the Corporate Tax Law doing qualifying R&D in the UAE. The activity must be novel, creative, uncertain, systematic and transferable or reproducible, in natural sciences, engineering or technology. Social sciences, humanities and the arts are excluded, and only the part of a project carried out in the UAE counts.
Two exclusions matter for smaller businesses. An entity that is not subject to Corporate Tax cannot claim, and neither can an entity that has elected Small Business Relief under Article 21 of the Corporate Tax Law. If you are a startup with revenue under AED 3 million, you will need to weigh the relief against the credit. Our Small Business Relief filing guide explains what the election means for your return. Qualifying Free Zone Persons face extra conditions too.
How do you apply through TAWWER?
ERDC describes four steps. An authorised individual signs in with UAE PASS, adds the company using its Tax Registration Number, and requests organisation access. The company鈥檚 authorised signatory registered with the FTA must approve that request. After that, you can start a new application.
The application asks for organisation and project details, research objectives, methodology, the scientific or technological uncertainties, a workplan, the R&D team, an estimated budget and supporting documents. ERDC can approve, approve in part or reject, and may send a Request for Information. It has not published a fixed review time. For tax groups, the parent company applies.
TAWWER is not a tax filing system. The actual credit is claimed later through your Corporate Tax return with the FTA, together with proof of pre-approval and a senior management declaration.
What should SMB owners and accountants do now?
Start by checking whether any 2026 project clears AED 500,000 of qualifying spend and whether you have at least two R&D staff on average. Qualifying spend covers staff costs (uplifted by 30% for overheads), consumables, subcontracting fees and cost contribution arrangements. Grant-funded or reimbursed costs do not count.
Next, make sure your Corporate Tax registration and FTA authorised signatory details are current, because TAWWER access depends on them. If you are not yet registered, our Corporate Tax registration guide walks through the EmaraTax steps.
Finally, set up your records now. Technical and financial documentation must be kept for seven years after the end of the tax period. Tagging R&D salaries, consumables and subcontractor invoices to a project in your accounting software makes the eventual claim far easier to support.
Frequently asked questions about the UAE R&D Tax Credit
Can I claim the R&D Tax Credit without ERDC pre-approval?
No. Pre-approval from ERDC through TAWWER is mandatory for every R&D project you claim on, and proof of pre-approval must accompany the claim in your Corporate Tax return.
Can a business using Small Business Relief claim the credit?
No. Cabinet Decision No. 215 of 2025 excludes any entity that has elected Small Business Relief under Article 21 of the Corporate Tax Law.
Is the UAE R&D Tax Credit refundable?
No. Under Ministerial Decision No. 24 of 2026 it is non-refundable and can only reduce Corporate Tax or Top-up Tax. Unused credit may be carried forward if the ownership conditions are met.
This post is for general information and does not constitute tax or legal advice. For how the rules apply to your specific situation, consult a qualified UAE tax adviser. Naqood is an FTA-accredited accounting platform for UAE businesses.