The United Arab Emirates (UAE) will implement a 15% minimum top-up tax, known as the Domestic Minimum Top-Up Tax (DMTT), on large multinational companies operating within the country starting January. The initiative, announced by the Ministry of Finance, aims to bolster non-oil revenue and comply with global tax standards.
The DMTT aligns with the OECD's global minimum corporate tax framework, which mandates that multinational enterprises pay a minimum effective tax rate of 15% on profits in every jurisdiction where they operate. This framework has been adopted by 136 countries, including the UAE, to counter tax avoidance practices.
Under the revised corporate tax law, the DMTT will apply to companies with consolidated global revenues of €750 million (approximately AED 3 billion) or more in at least two of the four financial years preceding the tax’s enforcement.
As a leading regional hub for multinational corporations, the UAE has been enhancing its tax regime. In 2023, the country introduced a 9% corporate tax, granting exemptions to businesses in its numerous free zones.
