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Important Update on BEPS Pillar Two Legislation in the UAE

The United Arab Emirates (UAE) has introduced Cabinet Decision No. 142 of 2024, implementing the Domestic Minimum Top-up Tax (DMTT) in alignment with the OECD’s Base Erosion and Profit Shifting (BEPS) Pillar Two framework. This ensures that large multinational enterprises (MNEs) operating in the UAE are subject to a minimum effective tax rate of 15% on locally earned profits.

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