The Ministry of Finance in the United Arab Emirates has revealed a significant tax development as the Organisation for Economic Co-operation and Development (OECD) has now included the UAE’s Domestic Minimum Top-up Tax (DMTT) in its Central Record of Legislation. This acknowledgment comes with Transitional Qualified Status.

According to the ministry, this recognition from the OECD underscores the UAE's stature as a pivotal hub for international commerce and investment. It is seen as a step that supports the nation’s commitment to sustainable economic growth.

With this qualified status, multinational enterprise groups operating within the UAE can avoid being taxed on profits in foreign jurisdictions, as these regions will acknowledge the UAE's top-up tax liability.

UAE Tax Update

This strategic move mitigates potential issues arising from complex multilateral audits and costly disputes. The DMTT's qualification under OECD’s Pillar Two safe harbour further reduces administrative pressures on businesses and tax authorities alike.

Consequently, entities within scope of these measures in the UAE will not be required to undertake top-up calculations in other countries.

The Ministry emphasized that such international recognition offers clarity for multinational companies stationed in the UAE, affirming their compliance with global tax norms. This development reinforces Akhbrna News' ongoing coverage of regional advancements and aligns with broader efforts to standardize taxation procedures internationally.