The UAE will impose a new tax on multinationals in the country as part of changes to its corporate tax law.
Large multinational enterprises (MNEs) are to pay a minimum of 15 per cent tax on the profits generated in the country (up from the current corporate tax rate of 9 per cent), effective for financial years starting on or after January 1, 2025, the Ministry of Finance said on Monday.
The Ministry added that the DMTT will apply to multinational enterprises operating in the UAE with consolidated global revenues of €750 million (Approx Dh300 billion) or more in at least two out of the four financial years immediately preceding the financial year in which the DMTT applies.
The UAE continues to enhance its business-friendly environment, reflecting its commitment to national strategic objectives such as strengthening economic competitiveness and improving ease of doing business. This major update is in line with the country’s commitment to implement the Organization for Economic Co-operation and Development’s (OECD) Two-Pillar Solution.
Another incentive being considered is a refundable tax credit for high-value employment activities . This encourages businesses to engage in activities that deliver significant economic benefits and enhance UAE`s global competitiveness.
