The UAE is set to introduce a new tax on multinational companies operating in the Emirates. The country also plans to continue changing the country's economic system. Find out when the changes will come into effect and who will be affected

The United Arab Emirates government recently announced the introduction of a new tax for multinational corporations operating in the country. From now on, large international companies will have to pay a minimum tax of 15% of their profits.

Who will be affected by the changes and when will they become relevant? We tell you.

When will the new tax for international business in the UAE come into effect?

The Ministry of Finance announced that the tax, called the Domestic Minimum Top-up Tax (DMTT), will come into effect in the new financial year from January 1, 2025.

Which companies will be subject to the Domestic Minimum Top-up Tax (DMTT)?

The tax will apply to companies whose combined global revenue is EUR 750 million in the two years preceding the start of the tax.

Additional details on the new tax legislation will be published by the Ministry of Finance in the near future.

The rule is being introduced to create a fair and transparent tax system that meets global standards.

---

To move, travel or work safely in a new country, you will need health insurance. You can apply for an extended policy on our website here.

---

What other changes can businesses expect in the UAE in 2025?

The UAE continues to improve its business environment, reflecting its commitment to national strategic goals such as strengthening economic competitiveness and facilitating the ease of doing business, including:

1. The Ministry of Finance is considering introducing tax incentives to incentivize research and development (R&D). This expenditure-based incentive is expected to be effective from 1 January 2026.

According to the results of a public consultation held in April 2024, the tax credit will be 30-50% of R&D costs and will be refundable, depending on the company’s revenue and number of employees in the UAE.

2. Another proposed measure will be a reverse tax credit for highly skilled employment. This measure will encourage companies to create jobs that will contribute to innovation and increase the competitiveness of the UAE in the global market.

The incentive is expected to start from January 2, 2025 and will be provided as a percentage of the salary costs of employees employed in key and strategic positions.

The final forms and timing of the implementation of these initiatives depend on legislative approvals in the UAE.

As a reminder! Dubai is a popular tourist destination that attracts millions of travelers every year. However, in 2024, the local authorities tightened the requirements for obtaining a tourist visa. We have already talked about the new rules for obtaining a tourist visa in Dubai, which came into effect in 2024.

---

Igor Usyk - Head of Migration department at VisitWorld

To ensure a safe move to a new country, I advise you to consult a specialist. My colleagues, qualified specialists with a legal education, will help you avoid unpleasant situations during migration.

---

Products from Visit World for a comfortable trip:

---

We monitor the accuracy and relevance of our information, so if you notice any errors or inconsistencies, please contact our hotline.