{"id":100530,"date":"2025-02-10T00:00:00","date_gmt":"2025-02-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/new-tax-relief-package-exempts-investment-firms-smaller-multinationals-from-top-up-tax\/"},"modified":"2025-02-10T00:00:00","modified_gmt":"2025-02-10T00:00:00","slug":"new-tax-relief-package-exempts-investment-firms-smaller-multinationals-from-top-up-tax","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/02\/10\/new-tax-relief-package-exempts-investment-firms-smaller-multinationals-from-top-up-tax\/","title":{"rendered":"New tax relief package exempts investment firms, smaller multinationals from top-up tax"},"content":{"rendered":"

New top-up tax relief package:<\/strong> The Finance Ministry issued a cabinet decision providing further details on the domestic minimum top-up tax (DMTT)<\/a> for large multinational enterprises (MNEs), Wam<\/a> reports. The tax, which took effect this year, raises the minimum corporate tax rate from 9% to 15% for MNEs with global revenues of EUR 750 mn or more in at least two of the four preceding financial years.<\/p>\n

New relief measures + exclusions introduced:<\/strong> A tax carve-out has been introduced, offering relief through a substance-based income exclusion, reducing taxable excess net income based on payroll and the carrying value of tangible assets. Additionally, a de minimis exclusion allows certain qualifying entities to be fully exempt from the UAE DMTT, though the specific eligibility criteria were not disclosed. <\/span>Alvarez and Marsal<\/a> says the criteria includes revenues being less than EUR 10 mn or an income of less than EUR 1 mn or a loss.<\/span><\/p>\n

Investment entities are also excluded<\/strong>, and transitional measures ensure no DMTT applies during the initial phase of a multinational\u2019s international activity, provided it is not controlled by a parent entity subject to a qualified income inclusion rule in another jurisdiction.<\/p>\n

REMEMBER- The Finance Ministry was mulling tax credits: <\/strong>A separate proposal pending legislative approvals suggested tax credits as a percentage of eligible salary costs for high-value employment activities, including C-suite executives and senior personnel performing core business functions that enhance the UAE's global competitiveness. The ministry was also considering a new research and development tax incentive, potentially offering 30-50% refundable tax credits, depending on the company\u2019s revenue and UAE-based workforce. <\/p>\n

The UAE \u2764\ufe0f foreign investments : <\/strong>The Finance Ministry also issued amendments in November<\/a> to ease administrative and tax compliance requirements for domestic businesses, foreign partnerships, and family foundations. These include considering foreign partnerships tax-transparent if they hold that status in their home country, allowing foreign firms to apply for tax-transparent status, and fewer requirements for reporting on partner composition.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new substance-based income exclusion lowers taxable income based on payroll and tangible assets<\/p>\n","protected":false},"author":1,"featured_media":100531,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1626],"tags":[2000,7,1379],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-100530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax","tag-corporate-tax","tag-enterpriseam-uae","tag-tax","wpautop","entry"],"acf":{"mongo_id":"ff639880-d828-4a88-974f-316b283fbdb2","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/10\/2663.jpg","photo_position":"above","homepage_title":"","full_issue_title":"New tax relief package exempts investment firms, smaller multinationals from top-up tax","related_issue":[100520],"teaser":"A new substance-based income exclusion lowers taxable income based on payroll and tangible assets","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/2\/.1e194140-a6f4-4581-a020-8d2c3c700a2b.mp3"},"yoast_head":"\nNew tax relief package exempts investment firms, smaller multinationals from top-up tax - 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