Domestic Minimum Top-up Tax - Tax Update

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  • In a recent update:
    • On December 9, 2024, the UAE Ministry of Finance confirmed the introduction of a Domestic Minimum Top-up Tax (DMTT) at a rate of 15%. This tax will apply to large multinational groups with consolidated revenues exceeding EUR 750 million and operations in multiple jurisdictions, effective January 1, 2025
    • The UAE Ministry of Finance has notified taxpayers that the Federal Decree Law No. (47) will be amended to include provisions for the implementation of a DMTT for multinationals operating within the UAE. This is also aligned to the Federal Decree-Law No. 60 of 2023 for amending certain provisions.

    • As part of this update, the Ministry of Finance will soon issue official guidance and detailed information on tax incentives and relief measures.