The UAE’s Ministry of Finance (MoF) is seeking corporate feedback on the implementation of a global minimum tax in the country. The consultation is open to all stakeholders, with a focus on multinational groups operating in the UAE. Submissions will help inform the ministry on domestic implementation issues and ways to minimize compliance costs. Stakeholders can submit their responses by April 10 via the ministry’s website.
The global minimum tax targets multinational enterprises (MNEs) with annual consolidated revenue of €750 million or more. It ensures these MNEs pay a minimum tax of 15% on excess profits derived from every jurisdiction they operate. The UAE signed up for the GMT agreement in November 2023, aligning with global tax reforms.
The UAE has launched a digital public consultation on implementing the tax. The consultation covers aspects such as the design of a potential UAE domestic minimum top-up tax and administration matters. The UAE will announce further details on its implementation of the tax in due course.
The consultation is open to all stakeholders, including advisors, service providers, and investors. The UAE aims to minimize compliance costs and explore policy options for potential implementation of the income inclusion rule (IIR), undertaxed profits rule (UTPR), and a domestic minimum top-up tax (DMTT).
The UAE’s implementation of specific measures, such as the OECD’s Pillar Two rules, has been delayed until 2025. The tax isn’t industry-specific; any large multinational enterprise meeting the criteria will be subject to the GMT in the UAE. The tax is already underway in some countries, marking a significant shift in international tax policies.