UAE’s Domestic Minimum Top-Up Tax for Multinational Enterprises: An Explainer
The United Arab Emirates (UAE) has embarked on a significant journey in the global tax landscape with the introduction of the Domestic Minimum Top-Up Tax (DMTT). This move aligns the UAE with international tax reforms, particularly the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) framework. The DMTT is designed to ensure that multinational enterprises (MNEs) operating in the UAE pay a minimum effective tax rate of 15% minimum tax UAE on their profits, thereby preventing tax avoidance practices and maintaining the UAE's status as a competitive business hub. What is the Domestic Minimum Top-Up…