The Ministry of Finance of the United Arab Emirates (“UAE”) recently released a Frequently Asked Questions (the “FAQs”) that provide clarifications on the Cabinet Decision No. 142 of 2024 on the imposition of Top-Up Tax on Multinational Enterprises to implement a Domestic Minimum Top-up Tax in the UAE.
The Cabinet Decision implements Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, as amended by Federal Decree-Law No. 60 of 2023.
In this article, our Tax Partners, Olivier Remacle and Andreas Medler, and our Tax Principal, Barbara Schwartz, describe the key takeaways, provided by the FAQs, in relation to the UAE Domestic Minimum Top-up Tax applicable to fiscal years beginning on or after 1 January 2025.