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UAE Introduced 15% Tax for Large Multinationals in 2025

The UAE will introduce a Domestic Minimum Top-Up Tax (DMTT) of 15% on large multinational companies starting January 2025. This tax applies to companies with yearly global revenues of more than €750 million. The decision aligns with global tax rules under the OECD’s Pillar Two framework, which aims to ensure big businesses pay a minimum tax rate worldwide. The UAE is taking this step to boost its non-oil revenue and support economic growth.
 
This new tax is designed to make sure large multinational companies pay at least 15% tax in every country where they operate, including the UAE. However, it only affects big global businesses, not smaller companies or startups. The UAE’s current business-friendly policies, such as a 0% corporate tax for small businesses and 100% foreign ownership in free zones, will remain the same for most businesses.

Even with the introduction of the DMTT, the UAE remains a top choice for setting up businesses. Its location, strong infrastructure, and welcoming policies for entrepreneurs make it a great place to start or grow a business. Small and medium-sized companies, as well as startups, can still take advantage of free zone benefits, lower costs, and simple regulations.

The new tax also shows the UAE’s commitment to keeping up with international rules while encouraging investments in important industries like technology, healthcare, and renewable energy. These sectors continue to get strong government support as the focus of the DMTT is only on large-scale multinational companies.

 

 

How Can Choose UAE Help

For those planning to start a business in the UAE, it’s important to understand these changes, even if they don’t directly affect smaller businesses. Staying updated on tax policies helps ensure smooth operations and long-term success. The UAE’s balanced approach of following global standards while keeping investor-friendly policies makes it an ideal place for businesses to thrive. Choose UAE can help you start your business in the UAE by assisting with trade license registration and managing your taxes efficiently.

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