Begin typing your search above and press return to search.
proflie-avatar
Login
exit_to_app
Adani and his group buying governance
access_time 23 Nov 2024 4:45 AM GMT
Trump
access_time 22 Nov 2024 2:47 PM GMT
election commmission
access_time 22 Nov 2024 4:02 AM GMT
Champions Trophy tournament
access_time 21 Nov 2024 5:00 AM GMT
The illness in health care
access_time 20 Nov 2024 5:00 AM GMT
The fire in Manipur should be put out
access_time 21 Nov 2024 9:19 AM GMT
DEEP READ
Munambam Waqf issue decoded
access_time 16 Nov 2024 5:18 PM GMT
Ukraine
access_time 16 Aug 2023 5:46 AM GMT
Foreign espionage in the UK
access_time 22 Oct 2024 8:38 AM GMT
exit_to_app
Homechevron_rightMiddle Eastchevron_rightUAEchevron_rightGlobal Minimum Tax in...

Global Minimum Tax in UAE, Ministry initiates consultation

text_fields
bookmark_border
Global Minimum Tax in UAE, Ministry initiates consultation
cancel

Dubai: The UAE Ministry of Finance (MoF) has initiated a consultation process to gather corporate feedback on the potential implementation of a Global Minimum Tax within the country. The consultation, open to all stakeholders, aims to address key considerations surrounding the adoption of this tax framework.

While the consultation welcomes input from various entities, the MoF has expressed particular interest in hearing from the "global community" of multinational groups operating in the UAE, along with their advisors, service providers and investors. This inclusive approach highlights the ministry's commitment to engaging with diverse perspectives to inform its decision-making process.

Key objectives of the consultation include identifying potential domestic implementation challenges and exploring ways to minimize compliance costs for businesses. The MoF seeks to gather insights on navigating interactions with the UAE’s Corporate Tax (CT) system and evaluating policy options related to the income inclusion rule (IIR), undertaxed profits rule (UTPR) and domestic minimum top-up tax (DMTT).

According to the MoF’s guidance paper, the global minimum tax (GMT) targets multinational enterprises (MNEs) with annual consolidated revenue exceeding €750 million. This tax framework ensures that MNEs pay a minimum tax of 15 per cent on excess profits derived from every jurisdiction they operate in. The implementation of the income inclusion rule (IIR) and undertaxed profits rule (UTPR) collectively form the global anti-base erosion rules, aiming to establish a level playing field in corporate taxation.

Farah Mourad, a senior market analyst at Equiti Group, elucidated the significance of the global minimum tax as a universal benchmark agreed upon by countries to set a baseline for corporate taxation. This tax regime aims to promote fairness and equity by ensuring that multinational corporations contribute their fair share to the societies in which they operate. In essence, it serves as a mechanism to prevent significant tax disparities and uphold social responsibility among corporations.

Inputs from Khaleej Times

Show Full Article
TAGS:UAEUAE newsDubai NewsSelect A TagTax law
Next Story