Sharjah, United Arab Emirates – April 11, 2024 – The Ministry of Finance (MoF) of the United Arab Emirates (UAE) has successfully concluded a digital public consultation aimed at gathering stakeholder feedback on implementing the Global Minimum Tax (GMT) framework.
Spanning from March 15 to April 10, the consultation focused on adopting the Organization for Economic Co-operation and Development’s (OECD) Global Anti-Base Erosion (GloBE) Rules and potentially introducing a domestic minimum tax in the UAE.
The consultation, a demonstration of the UAE’s commitment to transparency and collaboration, solicited input from a wide range of stakeholders, including multinational corporations operating in the UAE, tax professionals, and investors. It revolved around two primary areas of discussion:
- Domestic Minimum Tax Design: Participants were encouraged to share their insights and perspectives on crafting a domestic minimum tax structure that aligns with the GloBE Rules. The OECD’s GloBE Model Rules serve as a blueprint for jurisdictions to enact a minimum tax on multinational companies, aiming to prevent profit shifting and tax avoidance.
- Substance-Based Incentives: In addition to discussions on minimum tax design, the consultation explored the potential introduction of incentives within the UAE’s corporate tax regime. The UAE proposes linking incentives to tangible economic activities conducted within the country. This would reinforce its commitment to fostering genuine economic substance and value creation.
To facilitate informed participation, the MoF provided stakeholders with a briefing document detailing the Global Minimum Tax framework alongside the digital consultation platform.
Source: FinancialWorld
