The UAE Ministry of Finance has announced updates in relation to certain provisions of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
The UAE has confirmed the introduction of a 15% Domestic Minimum Top-up Tax (DMTT), effective 1 January 2025. The regime applies to multinational enterprise groups with consolidated global revenues exceeding EUR 750 million, aligning the UAE’s corporate tax framework with the OECD’s Pillar Two Global Minimum Tax standards.
The DMTT will apply irrespective of the group’s country of incorporation. In-scope businesses will be required to calculate their effective tax rate and apply the DMTT where the threshold is not met. Affected groups are encouraged to start early reviews of their tax planning and cross-border structuring.
This marks a significant shift in the UAE’s taxation model, with a direct impact on financial reporting, group consolidation, and international operations.
Get in Touch
For more information on how any of these developments may affect your organisation or your clients, please contact Suneer Kumar, Head of Corporate Practice on suneer@alsuwaidi.ae and Vida Grace Serrano, Corporate Senior Associate on Vida@alsuwaidi.ae.
Alsuwaidi & Company’s corporate team advises on a wide range of matters including regulatory compliance, investment structuring, M&A, employment, and tax strategy. We support multinational and regional businesses across sectors with practical, commercially grounded legal guidance.