The EAU have issued new rules on recharge tax in the country.
The Ministry of Finance announced the issuance of Ministerial Decision No. (88) or 2025, adopting all the orientation issued by the Organization for Economic Cooperation and Development (OECD) on the global anti-base erosion rules (Globe) (Pilar Dos).
This decision follows the issuance of the Cabinet Decision No. (142) or 2024 regarding the imposition of a recharge tax on multinational companies.
EAU tax guidelines
This decision reaffirms the continuous commitment of the EAU to apply international standards and best practices in the field of taxes, in line with the OECD inclusive framework on base erosion and change of profits, or what the EAU are members.
The Ministry clarified that the adoption of the new decision includes all administrative orientation and relevant comments issued by the OECD until January 2025.
This ensures that the minimum minimum recruitment tax framework (DMTT) of the United Arab Emirates (DMTT) remains consistent and is aligned with the rules of the OECD’s globe model, further minimizing the compliance load for multinational companies in the scope.
