United Arab Emirates MOF Announces Amendments to Implement Pillar 2 Global Minimum Taxation

The Emirati Ministry of Finance Dec. 9 announced amendments to Federal Decree Law No. 47 of 2022 on corporate and business tax to implement global minimum taxation under Pillar Two of the OECD’s base erosion and profit shifting (BEPS) initiative. The amendments include the introduction of: 1) a local supplementary tax minimum Domestic Minimum Top-up Tax (DMTT) to align with the OECD “two-pillar solution” project, imposing a minimum effective tax rate of 15 percent on large multinational companies with consolidated global revenues of 750 million euros (US$789.7 million) or more, effective Jan. 1, 2025; 2) an R&D tax incentive of ...