UAE Sets New 15% Tax Benchmark for Multinationals

The UAE will introduce a 15% minimum top-up tax for large multinationals starting in January, aligning with the OECD's global tax agreement. The law targets companies with significant revenue and includes potential R&D incentives. This move aims at increasing non-oil revenue, reflecting changes in regional economic policies.

The United Arab Emirates is set to implement a minimum top-up tax of 15% on large multinational companies beginning January, marking a significant move towards boosting non-oil revenue.

This decision aligns with the OECD's global tax mandate, to which 136 countries have committed, ensuring big corporations pay a minimum 15% effective tax. The tax will target companies with substantial global revenue, exceeding 750 million euros in at least two out of four previous financial years.

The UAE, a notable hub for multinationals in the Middle East, had previously introduced a 9% corporate tax with free zone exemptions. The new tax plan is part of broader amendments, including potential R&D incentives, to stimulate high-value employment, subject to legislative approval.

(With inputs from agencies.)