The UAE Ministry of Finance (MoF) has 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.
The Ministry said the OECD’s recognition cements the country’s position as a leading global hub for international business and investment, while supporting its sustainable development agenda.
Under the qualified status, the UAE’s DMTT ensures that multinational enterprise (MNE) groups are not subject to foreign taxes on profits, as other jurisdictions will recognise the United Arab Emirates’ top-up tax liability.
UAE tax update
This reduces the risk of complex and costly multilateral audit challenges and disputes.
The United Arab Emirates’ DMTT has also qualified for the OECD’s Pillar Two safe harbour, easing the administrative burden for both companies and the tax authority.
As a result, top-up calculations will not need to be carried out in other jurisdictions for in-scope United Arab Emirates entities.
The Ministry noted that the OECD’s recognition provides clarity and certainty for multinational companies operating in the United Arab Emirates, reinforcing the country’s alignment with international tax standards.
