The United Arab Emirates to Introduce Domestic Minimum Top-up Tax

The Ministry of Finance (“MoF”) has announced that the UAE will implement a 15% domestic minimum top-up tax (“DMTT”) targeting large multinational enterprises (“MNEs”). This tax will apply to MNEs with consolidated global revenues of at least EUR 750 million in any two out of the four financial years immediately preceding the financial year in which the tax is imposed. 

The concepts of top-up tax and multinational enterprises were introduced under Federal Decree-Law No. 60 of 2023, which amends certain provisions of Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses. 

The DMTT will take effect for financial years starting on or after 1 January 2025.