The UAE Cabinet has issued Decision No. 142 of 2024, introducing key provisions for the mechanism regulating the minimum tax rate for large multinational companies —Top-Up Tax. These changes align with the standards of the Organisation for Economic Co-operation and Development (OECD).
The decision is based on Article 3 of the Corporate Tax Law (Federal Decree-Law No. 47 of 2022), which sets tax rates and establishes a minimum tax of 15% for large multinational companies.
The new rules apply only to companies with a global annual revenue of at least EUR 750 million. This means that small and medium-sized enterprises, as well as local businesses, are not affected by this decision.
The document outlines:
The decision came into effect on January 1, 2025.
UAE - February 07, 2025
Original article: Real Law