UAE to Introduce 15% Minimum Tax for Large Multinationals in 2025
Amie Roberts • May 8, 2025
Starting from January 1, 2025, the UAE will implement a 15% Domestic Minimum Top-Up Tax (DMTT)
The UAE Ministry of Finance has announced a major policy shift that will affect large multinational corporations operating in the country.
Contact us
Starting from January 1, 2025, the UAE will implement a 15% Domestic Minimum Top-Up Tax (DMTT) for multinational enterprise (MNE) groups with global revenues exceeding €750 million.
This move brings the UAE into alignment with the OECD's global minimum tax framework and signals a clear intent to strengthen its standing as a responsible international tax jurisdiction.
What Is the 15% DMTT?
The Domestic Minimum Top-Up Tax is a new concept introduced under the OECD's Pillar Two rules.
It ensures that large multinationals pay at least a 15% effective tax rate on their profits, regardless of where those profits are booked.
The goal is to reduce tax base erosion and profit shifting to low- or no-tax jurisdictions.
Who Will Be Affected?
The DMTT will apply to MNE groups that meet the following criteria:
- Have consolidated global revenues of €750 million or more in at least two of the four preceding financial years.
- Operate entities within the UAE.
These businesses will be required to calculate their effective tax rate in the UAE and, if it falls below 15%, pay the difference.
Why Is the UAE Implementing This?
The UAE has traditionally been seen as a low-tax environment, which has contributed to its appeal as a regional headquarters hub.
However, as international pressure grows for tax transparency and fairness, the UAE is aligning with global standards to:
- Maintain its reputation among international investors
- Avoid the risk of other countries imposing their own top-up taxes on UAE-based profits
- Prepare the economy for long-term resilience beyond oil revenues
What Should Affected Businesses Do?
Review Global Structures: Companies should analyse how profits are currently reported and whether their effective tax rates fall below the 15% threshold.
Evaluate Substance and Transfer Pricing: Entities must demonstrate economic substance in the UAE, with accurate documentation to support intercompany transactions.
Update Forecasts and Budgets: Financial models and tax projections for 2025 and beyond should incorporate the impact of DMTT.
What about Freezones?
While some activities in free zones can enjoy preferential tax rates, the new DMTT will still apply to MNE groups even if their UAE entities are in free zones, depending on group size and financial structure.
Conclusion
This new tax regime is a significant development in the UAE's fiscal policy.
While it only targets the largest multinational groups, it reflects the broader shift towards responsible taxation and transparency.
Final Thoughts
If your business is part of a multinational group operating in the UAE, now is the time to prepare for the DMTT.
We provide practical guidance on corporate tax structuring, economic substance, and global tax alignment. Whether you’re a group CFO or a professional adviser supporting one, we welcome the opportunity to work with you.
The UK's non-dom tax regime has undergone one of its biggest overhauls in recent history—and the ripple effects are already being felt. With new rules kicking in from April 2025, the Government hoped for a revenue boost. Instead, it’s seeing an exodus of high-net-worth individuals. So, what’s really going on - and more importantly, what should you do about it? What Has Changed? Chancellor Rachel Reeves has scrapped the long-standing "non-dom" (non-domiciled) tax status. Under the new rules: Anyone living in the UK for more than four years will now pay UK tax on their worldwide income and gains. Inheritance tax will also apply globally for long-term residents. Transitional reliefs are being phased in, but the long-term direction is clear: the UK is no longer the tax haven it once was for international wealth. What’s the Impact? Far from delivering the forecasted £3 billion in annual revenue, the policy may actually cost the Treasury money. Why? More than 4,400 directors of UK businesses have already left in the past year. Up to 40% of non-doms are expected to follow. High-profile individuals - such as steel magnate Lakshmi Mittal - are reportedly eyeing exits. If even a quarter of non-doms leave, analysts suggest the government could lose £12 billion instead of gaining revenue. A Possible Policy U-Turn? Faced with this unexpected blowback, the Chancellor is now reconsidering parts of the policy: Inheritance tax rules for non-doms may be softened. A longer transition period for bringing overseas funds into the UK at reduced rates is on the table. New proposals are circulating, from tiered tax bands to repatriation incentives. Why This Matters to You If you're a non-dom, an international business owner, or someone with global assets tied to the UK, this is a crucial time to: Review your tax residency and exposure Reassess inheritance and estate planning Understand your options for relocating or restructuring wealth How Mosaic Chambers Group Can Help At Mosaic Chambers Group, we specialise in helping clients navigate precisely this kind of legal and fiscal uncertainty. Our team offers: Expert advice on UK tax residency and non-dom reforms Tailored inheritance tax planning International structuring solutions Ongoing support as the rules evolve Whether you're already planning a move abroad or simply looking to future-proof your wealth, we’re here to help you make confident, informed decisions. Final Thoughts The non-dom landscape is changing fast, and with more tweaks likely to come, staying ahead of the curve is essential. At Mosaic Chambers Group, we bring clarity to complexity - so you can focus on what matters most. Need advice or a personalised consultation? Get in touch with us today.
Free zones in the UAE are specially designated areas created to attract international investment and support economic growth. They offer a business-friendly environment with fewer restrictions and greater flexibility, making them an ideal choice for entrepreneurs, startups, and multinational companies. Each free zone is usually built around a specific industry, providing tailored infrastructure, licensing options, and regulatory benefits to suit sector-specific needs. Across the UAE, there are more than 40 of these free zones, each offering full foreign ownership — a major advantage for international investors. In addition to this, businesses benefit from efficient services, advanced facilities, and simplified setup procedures. These zones are designed to remove common barriers to entry, helping companies save time, cut red tape, and operate with greater ease and confidence. What Are Free Zones? Free zones are specially designated areas offering foreign investors a compelling package: 100% foreign ownership Full repatriation of capital and profits No corporate or personal taxes, very low customs duties Streamlined, business‑friendly setup procedures Modern infrastructure and vibrant business communities Key Free Zones in Dubai Jebel Ali Free Zone (JAFZA) Founded in 1985, JAFZA is one of the world’s largest free zones. It hosts over 9,500 companies spanning logistics, manufacturing, trading and real estate. Strategically located next to Jebel Ali Port, Al Maktoum and Dubai International Airports, it handles trade through 150 global ports — contributing significantly to Dubai’s GDP and attracting 32% of FDI. Dubai Airport Free Zone (DAFZ) Established in 1996, DAFZ is home to over 2,300 businesses across 20+ sectors, employing around 17,000 professionals. Located adjacent to Dubai International Airport, it offers duty‑free setup, full ownership, repatriation and world‑class facilities. Dubai Silicon Oasis (DSO) Since 2004, DSO has been the go‑to hub for tech companies, offering serviced offices, industrial land, warehousing and R&D facilities within a vibrant residential community. Dubai Studio City Launched in 2005, this zone caters to TV, radio and film production, including music, animation and post‑production. It provides studios, workshops, offices and storage tailored for media professionals. Dubai CommerCity The first free zone dedicated solely to e‑commerce, CommerCity supports brands operating across the MENASA region. It’s split into business, logistics and social clusters, offering warehousing, last-mile delivery, e‑commerce tech and customs advisory. Dubai Outsource City Founded in 2007, this zone focuses on outsourcing services — from call and data centres to warehousing — and includes built‑in support for licensing, registration and visa processing. It’s also known for hosting workshops and community-building events. Dubai Science Park This Al Barsha South zone supports scientific research, innovation and laboratories. It’s home to hundreds of companies and 3,000+ professionals across biotech, life sciences and environmental technologies. Dubai Healthcare City (DHCC) Opened in 2002, DHCC is dedicated to medical services, education and research. It features hospitals, clinics, diagnostic facilities, medical universities and wellness services, drawing medical tourists and becoming a healthcare innovation centre. Dubai International Financial Centre (DIFC) Established in 2004, DIFC is a finance-focused zone regulated by its own authority and courts. Covering banking, insurance, asset management and fintech, it offers English-language common-law framework and 50-year tax guarantees. It now hosts over 3,000 firms. Meydan Free Zone Born in 2009, Meydan supports more than 2,500 business activities ranging from e‑commerce and media to real estate. Located near major logistics hubs, it offers serviced offices, residences, and partnerships with companies like Aramex, Noon, and leading banks. Why Register in A Free Zone? 100% ownership without a local partner Tax-free environment and low customs duties Simplified and fast incorporation process Access to global markets via ports, air, digital & financial networks Comprehensive support services and formal infrastructures Thriving communities of like-minded businesses Final Thoughts Dubai offers a rich ecosystem of free zones, each optimised for a different industry, purpose and stage of growth. Whether you're in logistics, media, healthcare, finance, or cutting-edge tech, there's a zone designed to support your strategy. The key is aligning your business activity, space and connectivity needs with the right free zone, tax advantages, top-tier facilities and a supportive environment tailored for success. Looking for more than just a company setup? Talk to us about full-service relocation and advisory.