Latest news with #GloBEModelRules
CairoScene
05-05-2025
- Business
- CairoScene
Ministry of Finance Sets Domestic Tax for Multinational Enterprises
As a transitional measure, some newly established MNE groups will not be subject to the tax in their initial phase. Feb 09, 2025 The Ministry of Finance has introduced the Domestic Minimum Top-up Tax (DMTT), a new measure aligned with the OECD's global tax framework. The tax applies to multinational enterprises (MNEs) operating in the UAE with annual global revenues of USD 775 million or more in at least two of the past four financial years. The DMTT aims to ensure compliance with international tax standards while maintaining the UAE's appeal as an investment hub. It includes a Substance-Based Income Exclusion, reducing taxable income based on payroll and tangible asset values. Certain entities, such as investment firms and businesses meeting de minimis criteria, will be exempt. As a transitional measure, newly established MNE groups will not be subject to the tax in their initial phase, provided they are not controlled by a parent entity subject to a Qualified Income Inclusion Rule in another jurisdiction. The policy follows the OECD's GloBE Model Rules, with further guidance outlined in Cabinet Decision No. 142 of 2024.
Zawya
10-02-2025
- Business
- Zawya
UAE issues cabinet decision on top-up tax for multinationals
The UAE Ministry of Finance has announced the issuance of Cabinet Decision No. 142 of 2024 on the introduction of the Top-up Tax for Multinational Enterprises, providing further details on the UAE Domestic Minimum Top-up Tax (UAE DMTT). This follows the announcement made by the Ministry on December 9, 2024, said an Emirates News Agency (Wam) report. The UAE DMTT is closely aligned with the GloBE Model Rules issued by the Organisation for Economic Co-operation and Development (OECD). The UAE DMTT will apply to Entities that are members of Multinational Enterprises (MNEs) operating in the UAE with annual global revenues of €750 million or more in the Consolidated Financial Statements of the Ultimate Parent Entity in at least two out of the four financial years immediately preceding the financial year in which the UAE DMTT applies. The UAE DMTT provides relief through a Substance-based Income Exclusion, a carve out which reduces net Pillar Two income subject to the UAE DMTT to determine the Excess Profit for the purposes of computing the UAE DMTT, by an amount calculated based on payroll and the carrying value of tangible assets. Aligned with the GloBE Model Rules, the UAE DMTT also allows for an exclusion where an Entity meets the relevant de minimis exclusion criteria, under which the UAE DMTT for an Entity will be considered zero, provided that certain criteria are met. To bolster the UAE's competitiveness as a leading investment hub, the UAE DMTT has been structured to exclude Investment Entities, as defined under these rules, the report said. As part of a transitional measure and to create a tax environment conducive to economic growth, no UAE DMTT will be levied during the initial phase of an MNE Group's international activity, provided that none of the of the ownership interests of the Entities located in the UAE are held by a parent entity subject to a Qualified Income Inclusion Rule in another Jurisdiction. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
09-02-2025
- Business
- Trade Arabia
UAE issues cabinet decision on top-up tax for multinationals
The UAE Ministry of Finance has announced the issuance of Cabinet Decision No. 142 of 2024 on the introduction of the Top-up Tax for Multinational Enterprises, providing further details on the UAE Domestic Minimum Top-up Tax (UAE DMTT). This follows the announcement made by the Ministry on December 9, 2024, said an Emirates News Agency (Wam) report. The UAE DMTT is closely aligned with the GloBE Model Rules issued by the Organisation for Economic Co-operation and Development (OECD). The UAE DMTT will apply to Entities that are members of Multinational Enterprises (MNEs) operating in the UAE with annual global revenues of €750 million or more in the Consolidated Financial Statements of the Ultimate Parent Entity in at least two out of the four financial years immediately preceding the financial year in which the UAE DMTT applies. The UAE DMTT provides relief through a Substance-based Income Exclusion, a carve out which reduces net Pillar Two income subject to the UAE DMTT to determine the Excess Profit for the purposes of computing the UAE DMTT, by an amount calculated based on payroll and the carrying value of tangible assets. Aligned with the GloBE Model Rules, the UAE DMTT also allows for an exclusion where an Entity meets the relevant de minimis exclusion criteria, under which the UAE DMTT for an Entity will be considered zero, provided that certain criteria are met. To bolster the UAE's competitiveness as a leading investment hub, the UAE DMTT has been structured to exclude Investment Entities, as defined under these rules, the report said. As part of a transitional measure and to create a tax environment conducive to economic growth, no UAE DMTT will be levied during the initial phase of an MNE Group's international activity, provided that none of the of the ownership interests of the Entities located in the UAE are held by a parent entity subject to a Qualified Income Inclusion Rule in another Jurisdiction.
Emirates 24/7
07-02-2025
- Business
- Emirates 24/7
Ministry of Finance Announces Issuance of a Cabinet Decision on the Introduction of Top-up Tax for Multinational Enterprises
The Ministry of Finance has announced the issuance of Cabinet Decision No. 142 of 2024 on the introduction of the Top-up Tax for Multinational Enterprises, providing further details on the UAE Domestic Minimum Top-up Tax (UAE DMTT). This follows the announcement made by the Ministry on December 9, 2024. The UAE DMTT is closely aligned with the GloBE Model Rules issued by the Organisation for Economic Co-operation and Development (OECD). The UAE DMTT will apply to Entities that are members of Multinational Enterprises (MNEs) operating in the UAE with annual global revenues of €750 million or more in the Consolidated Financial Statements of the Ultimate Parent Entity in at least two out of the four financial years immediately preceding the financial year in which the UAE DMTT applies. The UAE DMTT provides relief through a Substance-based Income Exclusion, a carve out which reduces net Pillar Two income subject to the UAE DMTT to determine the Excess Profit for the purposes of computing the UAE DMTT, by an amount calculated based on payroll and the carrying value of tangible assets. Aligned with the GloBE Model Rules, the UAE DMTT also allows for an exclusion where an Entity meets the relevant de minimis exclusion criteria, under which the UAE DMTT for an Entity will be considered zero, provided that certain criteria are met. To bolster the UAE's competitiveness as a leading investment hub, the UAE DMTT has been structured to exclude Investment Entities, as defined under these rules. As part of a transitional measure and to create a tax environment conducive to economic growth, no UAE DMTT will be levied during the initial phase of an MNE Group's international activity, provided that none of the of the ownership interests of the Entities located in the UAE are held by a parent entity subject to a Qualified Income Inclusion Rule in another Jurisdiction. The UAE DMTT should be interpreted in line with the Commentary and Administrative Guidance issued by the OECD, available via this link. Cabinet Decision No. 142 of 2024 is available on the UAE Legislation's website: Follow Emirates 24|7 on Google News.
