Domestic Minimum Top-up Tax(DMTT) Compliance
Starting January 1, 2025, the United Arab Emirates (UAE) will introduce the Domestic Minimum Top-up Tax (DMTT) in line with global tax reforms under the OECD’s Pillar Two framework.
Stay Ahead of the UAE’s New Corporate Tax Reforms
Starting January 1, 2025, the United Arab Emirates (UAE) will introduce the Domestic Minimum Top-up Tax (DMTT) in line with global tax reforms under the OECD’s Pillar Two framework. This initiative ensures that large multinational enterprises (MNEs) operating in the UAE pay a minimum effective tax rate of 15% on their global profits, enhancing transparency and fairness in the global tax system. At Avtrade, we help multinational businesses seamlessly adapt to these new tax obligations. Our experts provide end-to-end DMTT compliance, assessment, and advisory services to ensure your organization remains compliant while optimizing your global tax position.
Our Domestic Minimum Top-up Tax (DMTT) Compliance Services Include:
1. DMTT Impact Assessment & Planning
Comprehensive review of your multinational group’s structure and tax profile. Identify potential exposure to the DMTT and develop effective strategies to minimize additional tax burdens.
2. Compliance Management Services
Ensure compliance with the UAE’s Federal Tax Authority (FTA) requirements under the new DMTT framework. Support in maintaining detailed documentation and records for global and domestic reporting.
3. Tax Submission & Reporting
Assistance with timely filing of DMTT-related reports and returns. Ensure accurate computation of top-up tax and reconciliation with existing corporate tax filings.
4. Professional Advisory & Support
Tailored advice on restructuring, intercompany transactions, and profit allocation to remain compliant while optimizing tax efficiency. Ongoing support and updates on evolving UAE DMTT regulations.
Key Features of the Domestic Minimum Top-up Tax (DMTT):
Who Does This Apply To?
Applies to multinational groups with consolidated global revenues of €750 million (approx. AED 3 billion) or more in at least two of the last four fiscal years.
Small and medium-sized enterprises (SMEs) are not affected by this tax.
How the Process Works?
If the effective corporate tax rate in the UAE is below 15%, a top-up tax will be applied to bridge the gap.
Example: If a company’s UAE operations are taxed at 9%, an additional 6% top-up will be levied to ensure the total rate equals 15%.
Why It Matters?
Aligns the UAE with global tax fairness standards.
Prevents profit shifting to low-tax jurisdictions.
Reinforces the UAE’s commitment to transparency and international tax compliance.
Why Choose Us
Specialized Tax Experts — Our UAE tax advisors and global tax professionals offer extensive knowledge of OECD Pillar Two regulations.
Holistic Compliance Strategy — We provide more than just compliance, helping you enhance tax efficiency and reduce potential risks.
Forward-Looking Tax Planning — Be fully prepared before 2025 with proactive guidance for a seamless shift to the updated tax framework.
Clear & Transparent Processes — We ensure open communication, accurate reporting, and full regulatory clarity at every step.
Contact Us
Phone: +971 551029109
Email: info@avtrade.ae
