Corporate Tax - Pillar 2

Frequently Asked Questions

As a member of the OECD BEPS Inclusive Framework, the UAE is dedicated to tackling global tax challenges faced by jurisdictions worldwide. Consequently, the implementation of a corporate tax (CT) regime enables the UAE to adopt the Pillar Two rules. While the UAE has yet to adopt the Pillar Two rules, multinational corporations will continue to be taxed under the regular UAE CT regime. Additional details regarding the implementation of the Pillar Two rules in the UAE will be disclosed in the future.

A “large” multinational refers to a multinational corporation that operates not only in its home country but also in other countries through subsidiaries, branches, or other registered entities. Merely generating foreign income without having a presence or registration in a foreign country would not classify a business as a multinational corporation. In the context of the OECD Base Erosion and Profit Shifting project’s “Pillar Two,” which proposes a global minimum effective tax rate, “large” denotes a multinational corporation with consolidated global revenues exceeding the equivalent of EUR 750 million in UAE Dirham.

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