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Tue, December 10, 2024

UAE to impose 15% minimum top-up tax on large multinationals from January


Published on 2024-12-10 01:20:56 - Reuters
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  • The United Arab Emirates said on Monday it will impose a domestic minimum top-up tax (DMTT) of 15% on large multinational companies operating in the country starting on or after Jan. 1, 2025 as it seeks to boost non-oil revenue.

The United Arab Emirates (UAE) has announced that it will implement a 15% domestic minimum corporate tax on large multinational enterprises starting January 1, 2024, in alignment with the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This decision follows the global tax reform aimed at ensuring multinational companies pay a fair share of tax wherever they operate. The UAE's move is part of a broader international effort to address tax avoidance by setting a global minimum tax rate. The tax will apply to companies with annual revenues exceeding 750 million euros, and it will help prevent profit shifting to low or no-tax jurisdictions. This initiative is expected to enhance the UAE's attractiveness as a business hub by providing tax certainty and aligning with international tax standards.

Read the Full Reuters Article at:
[ https://www.reuters.com/markets/uae-impose-15-domestic-minimum-top-up-tax-large-multinationals-jan-1-2024-12-09/ ]