Introduction

While Corporate Tax has introduced new compliance obligations, the UAE government is also offering strategic incentives to encourage innovation, investment, and national development.

This blog highlights the confirmed and expected tax incentives businesses should prepare to take advantage of in 2025.

Key Corporate Tax Incentives (Current & Expected)

1. Small Business Relief

• Revenue < AED 3 million (valid until Dec 2026)
• Treated as having no taxable income

2. Free Zone Incentives (QFZP)

• 0% tax on qualifying income from exports, inter-FZ trade, and passive income

3. Expected R&D Tax Credit (Under Review)

• Tax relief for qualifying R&D expenses
• Likely to favor tech, pharmaceutical, and clean energy sectors

4. Green Investment Incentives

• Possible deductions for capital investment in solar, EV infrastructure, waste-to-energy projects

5. Employment-based Relief

• Potential future incentives for hiring Emirati nationals in private companies

Eligibility & Documentation

• Must be registered and compliant with FTA
• R&D and green projects may require project-level reporting and MOF/FTA approval
• Free Zone incentives require QFZP conditions to be satisfied annually

Final Thoughts

Tax incentives can significantly reduce your liability while aligning with national economic goals. Businesses should prepare to track eligible expenses and maintain clean records to support claims.

Want to Maximize Tax Relief in 2025?

At Think Biz, we:

• Assess your eligibility for R&D or green investment deductions
• Assist in maintaining QFZP status
• Help you claim Small Business Relief correctly

Book a strategy session with us today.

Contact us today for a free consultation.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae