UAE, 9 December, 2024 : The UAE is set to implement a 15% Domestic Minimum Top-up Tax (DMTT) for multinational companies (MNEs) starting in 2025. The tax will apply to MNEs with global revenues of €750 million (approximately Dh300 billion) or more in at least two of the four preceding financial years. This move aims to establish a fair and transparent tax system in alignment with international standards, particularly the Organisation for Economic Co-operation and Development’s (OECD) Two-Pillar Solution. The Ministry of Finance announced the introduction of the DMTT on Monday, with further details to be issued in due course.
In addition to the DMTT, the UAE is also considering new tax incentives to encourage economic growth and innovation. One of these incentives is a research and development (R&D) tax credit, which could offer 30-50% refundable tax credits based on revenue and employee numbers.
The R&D incentive is expected to take effect from January 1, 2026. Another proposed incentive is a refundable tax credit for high-value employment activities, such as those performed by C-suite executives and senior personnel. This credit, aimed at enhancing the UAE’s global competitiveness, is set to be introduced on January 2, 2025. Both incentives are still subject to legislative approval.
Source : www.khaleejtimes.com
