UAE to Implement 15% Domestic Minimum Top-Up Tax for Multinationals in 2025

Posted by Admin on 2024-12-10 05:12:43 |

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UAE Announces 15% Domestic Minimum Top-Up Tax for Multinationals in 2025

Dubai, UAE — The United Arab Emirates (UAE) has revealed plans to introduce a 15% domestic minimum top up tax for multinational companies starting in 2025. This move aligns with global efforts to ensure that large corporations pay a fair share of taxes and supports the UAE commitment to the OECD international tax reforms.

The new tax will apply to multinational companies operating in the UAE whose global effective tax rate falls below 15%. The measure is part of a broader initiative to meet international tax standards and combat tax avoidance strategies used by global corporations to reduce their tax burdens.

UAE officials emphasized that the tax will not affect businesses already paying the 9% corporate tax introduced earlier this year. The minimum top up tax will only target multinational enterprises whose income is taxed at a lower rate in other jurisdictions, ensuring a uniform global tax system.

The UAE Ministry of Finance stated that the new tax aims to increase fiscal transparency and strengthen the country competitive tax environment.

This announcement follows similar actions by other countries around the world, aiming to curb tax base erosion and address concerns over tax fairness.