Abu dhabi: The UAE Ministry of Finance (MoF) announced that the Organisation for Economic Co-operation and Development (OECD) has published the UAE's Domestic Minimum Top-up Tax (DMTT) on its 'Central Record of Legislation with Transitional Qualified Status'.
According to Emirates News Agency, the Ministry noted that the UAE's adherence to international tax standards, along with the OECD's recognition, strengthens the nation's position as a hub for international business and investment. This recognition supports the UAE's sustainable development agenda.
Under the qualified status, the UAE's DMTT ensures that multinational enterprise (MNE) groups will not face foreign tax on UAE profits. Furthermore, other jurisdictions will acknowledge the UAE's top-up tax obligations, reducing the risk of complex multilateral audit challenges and disputes.
Additionally, the UAE's DMTT has qualified for the OECD Pillar 2 safe harbour, which lessens the administrative load for both MNEs and tax authorities. This means that top-up calculations are not required in other jurisdictions for entities that fall within the UAE's scope.
The announcement of this qualifying status brings clarity and certainty to MNEs operating in the UAE.