{
  "id": 3484359,
  "title": "UAE issues new regulation for top-up tax on large corporations",
  "url": "https://urgent.news/2026/08/26/uae-issues-new-regulation-for-top-up-tax-on-large-corporations",
  "topic": "world",
  "section": "World",
  "published": "2026-08-26T10:07:07.000Z",
  "source": {
    "name": "The National UAE",
    "slug": "the-national-uae",
    "url": "https://www.thenationalnews.com/business/2026/08/26/uae-issues-new-regulation-for-top-up-tax-on-large-corporations/"
  },
  "original_language": "en",
  "account": "The UAE's Ministry of Finance has introduced a new regulation concerning the filing obligations for top-up tax on multinational corporations. This Domestic Minimum Top-Up Tax (DMTT) applies to entities with global revenue of €750 million ($793 million) or higher in at least two of the four financial years leading up to the year the tax is imposed. It has been in place since January 1 of the previous year.\n\nThe recent decision outlines which entities must submit a Pillar Two information return to the Federal Tax Authority. This includes constituent entities, barring any investments located in the UAE, joint venture and JV subsidiaries within the Emirates, and \"stateless constituent entities\" that are reverse hybrids created under UAE law. A reverse hybrid entity is considered tax-transparent in its home territory but opaque in the territory of its owner. A stateless entity refers to one whose income is tax-exempt in its home country and lacks an independent tax residence.\n\nThe DMTT aligns with the Organisation for Economic Co-operation and Development's two-pillar reform program, which aims to establish a global minimum corporate tax rate of 15% to ensure large multinational enterprises pay a minimum tax on their profits in each country where they operate. This initiative seeks to resolve tax issues stemming from the digitalization and globalization of the economy and to curb tax competition, per the OECD. The UAE implemented a federal corporate tax with a standard statutory rate of 9% starting from the fiscal year beginning on or after June 1, 2023. Companies with profits exceeding Dh375,000 are taxed at this rate, while those with lower profits are taxed at zero percent.\n\nThe UAE's DMTT has also earned the OECD Pillar 2 safe harbor status, which lessens administrative burdens for multinational enterprises (MNEs) and the tax administration by eliminating the need for top-up calculations in other jurisdictions. The latest ministerial decision is part of the UAE's ongoing implementation of Pillar Two requirements, reaffirming the country's dedication to enhancing international tax transparency and providing multinational enterprises with greater tax certainty and clarity regarding their reporting obligations. Entities can file this information directly or through a designated local entity.",
  "summary": "The UAE's ministry of finance has issued a new decision on the filing obligations for top-up tax on multinationals . The UAE's domestic minimum top-up tax (DMTT), applies to multinational enterprises with consolidated global revenue of €750 million ($793 million) or more in at least two of the four financial years immediately preceding the financial year in which the tax applies. It has been in…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The National Business",
        "title": "UAE issues new regulation for top-up tax on large corporations",
        "url": "https://urgent.news/2026/08/26/uae-issues-new-regulation-for-top-up-tax-on-large-corporations-3486900",
        "published": "2026-08-26T10:07:07.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}