Abu Dhabi (Pakistan News Online) The UAE has announced the implementation of a new tax on multinational companies operating in the emirate. Under this new system, large multinational companies will have to pay a minimum tax of 15 percent on their profits.
The Ministry of Finance announced that the implementation of the Domestic Minimum Top-up Tax will begin for financial years from January 1, 2025. The aim of this initiative is to establish a fair and transparent tax system that is in line with global standards.
The ministry added that this tax will be applicable to multinational companies whose total global revenue is three billion dirhams or more in at least two of the last four financial years. More details of this legislation will be released by the Ministry of Finance soon.
Daily Pakistan quoted Khaleej Times as saying that the UAE is constantly striving to improve its business-friendly environment and this initiative is in line with the country’s national strategic objectives.