Business Desk 
Dec 10, 2024
Willing to surplus the generation of non-oil revenue in the country, the United Arab Emirates (UAE) government has announced to impose a minimum top-up tax (DMTT) of 15% on large multinational companies in the country starting from January 2025.
Announcing the implementation of DMTT as part of amendments to the corporate tax law, the UAE's finance ministry noted that the tax will be charged to enterprises with an established global revenue of 750 million euros ($793.50 million) or more in at least two out of four financial years preceding the tax's implementation.
The DMTT forms part of the OECD’s global minimum corporate tax agreement having 136 signatories, including the UAE, to oblige big-scale businesses to pay a minimum 15% tax, ultimately eradicating tax evasion.
The changes to the corporate tax come a year after the country slapped a 9.0% business tax while waiving it for various free zones fuelling its economy.
It's worth mentioning that the DMTT is also a part of the Organisation for Economic Co-operation and Development’s (OECD) Two-Pillar Solution, which specifies that large multinational enterprises pay a minimum 15% tax on profits to each country they operate in.
Besides DMTT, the UAE's finance ministry is also planning to devise some incentives on corporate tax, which includes one for research and development (R&D) applied for tax periods starting in 2026.
