The UAE will introduce a 15% Domestic Minimum Top-up Tax(DMTT) for multinational companies starting January 1,2025. This tax will apply to companies with global revenues of €750 million (approx. AED3 Billion)or more in at least two of the past four years. This move aligns with global tax reforms and supports the OECD’s Two-Pillar Solution ,which aims to create a fairer and more transparent tax system. Further details on the implementation will be issued by the Ministry of Finance in due course.
In addition to the DMTT, the UAE Ministry of Finance is considering two new corporate tax incentives. A research and development (R&D) tax incentive, offering 30-50% refundable credits, is expected to take effect in 2026 to encourage innovation and economic growth. The government is also exploring a tax credit for high-value employment activities, set to begin in 2025, which would incentivize senior-level positions that contribute significantly to the UAE’s economic development. These measures reflect the UAE’s commitment to enhancing its business environment and global competitiveness.