The UAE Ministry of Finance (MoF) is soliciting corporate comment on establishing a global minimum tax in the country. The consultation is available to all stakeholders, but the MoF is “particularly keen” to hear from the “global community” of multinational corporations operating in the UAE, as well as their advisors, service providers, and investors.
According to the ministry, submissions will assist it in determining domestic implementation issues, such as interactions with the UAE’s Corporate Tax (CT) system; ways to reduce compliance costs; and policy options for potential implementation of the income inclusion rule (IIR), undertaxed profits rule (UTPR), and domestic minimum top-up tax (DMTT).
According to the MoF’s guidance document, the global minimum tax (GMT) applies to multinational enterprises (MNEs) with an annual consolidated revenue of €750 million or more. “Broadly, it makes sure these MNEs pay a minimum tax of 15 percent in respect of the excess profits derived from every jurisdiction they function through two interlocking rules, the IIR and UTPR, which are collectively referred to as the global anti-base erosion rules or GloBE Rules.”
