Starting from January 1, 2025, the Domestic Minimum Top-up Tax (DMTT) applies in UAE for multinational groups meeting the EUR 750 million global revenue threshold.
๐ช๐ต๐ ๐ฑ๐ผ๐ฒ๐ ๐๐ต๐ถ๐ ๐บ๐ฎ๐๐๐ฒ๐ฟ?
Under OECDโs Pillar Two rules, all in-scope UAE entities will be required to pay a minimum 15% effective tax rate.
๐ฅ๐ฎ๐๐ฒ: 15%
๐๐ณ๐ณ๐ฒ๐ฐ๐๐ถ๐๐ฒ ๐ณ๐ฟ๐ผ๐บ: FY starting on or after Jan 1, 2025
๐๐ถ๐น๐ถ๐ป๐ด ๐ฑ๐ฒ๐ฎ๐ฑ๐น๐ถ๐ป๐ฒ: Within 15 months of financial year-end (first year gets 18 months as per Pillar- 2 transitional rules )
๐ช๐ต๐ผ ๐บ๐๐๐ ๐ฟ๐ฒ๐ด๐ถ๐๐๐ฒ๐ฟ: All in-scope UAE constituent entities & JVs
๐ฅ๐ฒ๐๐๐ฟ๐ป๐ ๐๐ผ ๐ณ๐ถ๐น๐ฒ: Top-up Tax Return + Pillar Two Information Return
๐ช๐ต๐ฎ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐๐ฒ๐ ๐บ๐๐๐ ๐ฑ๐ผ ๐ป๐ผ๐:
1. Assess eligibility and MNE status
2. Start data mapping for GloBE Income, Adjusted Covered Taxes, ETR
3. Prepare systems to meet reporting and compliance requirements
4. Coordinate globally with parent entities to align data and timing
