UAE amends corporate tax law for global minimum tax implementation

On 24 November 2023, the United Arab Emirates released the Federal Decree Law No. 60 of 2023 in the Official Gazette with amendments to selected provisions of Federal Decree-Law No. 47 of 2022 (the Corporate Tax Law).

The amendments are made as the UAE prepares to introduce the Pillar 2 global minimum tax. The amendments do not include precise regulations regarding implementing the global minimum tax. These regulations will be established in forthcoming decisions.

In 2018, the UAE joined the comprehensive framework of the BEPS program, and on 1 June 2023, the UAE introduced a federal corporate tax of 9% of its history.

Furthermore, the UAE Ministry of Finance (MoF), in cooperation with the Organisation for Economic Co-operation and Development (OECD), hosted the Pillar Two Regional Forum, related to the Global Minimum Tax of Base Erosion and Profit Shifting (BEPS) and the Global Anti-Base Erosion Rules (GloBE) on 13 September 2023.

The implementation of global minimum tax rules is anticipated in 2025, with the possibility of an earlier introduction of a top-up tax in 2024.

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