UAE, 15 March, 2024 : The UAE Ministry of Finance has initiated a public consultation concerning the Global Minimum Tax or Global Anti-Base Erosion Model (Pillar Two) - GloBE Rules established by the Organization for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
This consultation aims to ascertain the appropriate response of the UAE to the global implementation of the GloBE Rules. The Ministry seeks input on how these rules can be effectively implemented within the UAE, including their interaction with the country's corporate income tax system. Additionally, the Ministry is interested in strategies to minimize compliance costs and exploring policy options for potential GloBE Rules implementation.
The consultation paper addresses the following key areas:
- Pillar Two implementation in the UAE – covering GloBE implementation, the design of a potential UAE DMTT and administration matters
- Substance-based incentives
Furthermore, alongside the consultation paper, the Ministry has issued a guidance paper that delves into the specific aspects of the GloBE Model Rules for further clarity and understanding.
The public consultation ends on 10 April 2024.
Source : www.mof.gov.ae
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