15% Nation-Wide Tax on Large Multinational Corporations Announced

A major update to the UAE’s corporate tax framework has just been announced, introducing a 15% domestic minimum top-up tax (DMTT) for large multinational enterprises (MNEs) with consolidated global revenues of EUR 750 million (USD 793 million) or more. The measure will be effective for financial years starting on or after January 1st, 2025.

By targeting profits generated within the UAE, the measure ensures that large corporations pay their share of taxes, addressing challenges posed by the digitalization and globalization of the economy. Globally, this initiative is expected to generate an additional USD 220 billion annually in corporate tax revenues.

In addition to the new tax measure, the Ministry of Finance has unveiled plans to bolster the country’s economic competitiveness through targeted incentives. A research and development (R&D) tax incentive, effective from January 1st, 2026, will offer qualifying businesses refundable tax credits of up to 50% for domestic R&D expenditures.

A separate incentive, set to launch on January 1st of next year, will reward businesses engaging in high-value employment activities. Companies employing C-suite executives and senior personnel performing core functions that contribute substantially to the UAE’s economy will receive a refundable tax credit based on eligible salary costs.

These initiatives aim to attract global talent and drive economic growth by encouraging high-impact business operations within the country.