UAE Implements Top-up Tax and Adopts OECD Two-Pillar Solution
1 report, 1 independent
Updated Jan 1
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What happened
On January 1, 2025, the United Arab Emirates implemented Top-up Tax legislation and adopted the OECD/G20 Two-Pillar Solution. The Federal Tax Authority issued a new guide detailing the scope and registration requirements for the Top-up Tax on Multinational Enterprise Groups. This guide provides practical explanations regarding the application of the Qualified Domestic Minimum Top-up Tax (QDMTT) legislation.
Why it matters
The legislation supports the OECD/G20 Two-Pillar Solution, establishing a framework for minimum taxation for multinational groups. The new guide clarifies registration obligations and the scope of the Top-up Tax for various types of businesses operating in the United Arab Emirates.
Who's involved
- United Arab EmiratesImplemented the Top-up Tax legislation and adopted the OECD/G20 Two-Pillar Solution.