RIYADH: According to the UAE’s Finance Ministry, big multinational corporations would be subject to a minimum top-up tax of 15% beginning in January.
This action is a component of the UAE’s plan to raise non-oil revenue and conform to international tax regulations.
The UAE is one of 136 nations that have joined the OECD’s global minimum corporation tax agreement, which includes the Domestic Minimum Top-up Tax.
Companies with consolidated worldwide revenues of €750 million ($793.5 million) or more in at least two of the four fiscal years preceding the tax’s adoption will be subject to the DMTT under changes to the corporation tax code.
“With the implementation of a 9 percent corporate tax rate in 2023, the UAE has transitioned from a tax haven to a low-tax jurisdiction,” stated Century Group chairman Bal Krishen.
The OECD’s “Two-Pillar Solution,” which includes the DMTT, requires big multinational corporations to pay a minimum effective tax rate of 15% on their profits in each of the nations in which they conduct business.
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