UAE’s 15% Minimum Tax for Multinationals: Scope and Exemptions Explained
Amie Roberts • May 13, 2025
DMTT Scope & Exemptions Explained
Following our last article introducing the UAE’s 15% Domestic Minimum Top-Up Tax (DMTT)
for large multinational groups, this follow-up provides further information on which businesses fall within scope—and more importantly, which are exempt.
Contact Us
Read previous article
What Is the DMTT?
To recap briefly, the Domestic Minimum Top-Up Tax is part of the UAE’s alignment with the OECD’s Pillar Two framework, ensuring that multinational groups pay a minimum effective tax rate of 15% in each jurisdiction where they operate. Rather than replacing existing UAE corporate tax, the DMTT works alongside it—applying only in cases where the effective rate falls below the global threshold.
What Has Been Clarified?
Exclusions for Smaller Entities
The DMTT only applies to MNE groups with global revenue exceeding €750 million. Standalone companies and smaller business groups remain unaffected.
No Retroactive Application
The tax will only apply from the 2025 financial year onwards, and assessments will not cover previous periods.
Treatment of Free Zone Income
While income from qualifying free zone activities may continue to enjoy a 0% rate, any income outside the scope of free zone benefits could still be subject to the DMTT.
Interaction With Existing UAE Corporate Tax
The standard 9% corporate tax introduced in June 2023 will continue to apply. The DMTT is designed to work alongside, not replace, the existing tax framework.
Implications for Business Planning
- Global Coordination: Multinational finance teams must now coordinate with UAE subsidiaries to ensure group-level compliance.
- Data Readiness: Companies need to gather and structure financial data across jurisdictions to meet reporting standards.
- Technology Upgrades: Tax reporting systems may need to be upgraded to handle the complexity of DMTT calculations and filings.
Practical Steps for UAE Businesses in Scope
For large international groups operating in the UAE, the DMTT introduces a new layer of tax planning and compliance obligations. Here’s what to focus on in the months ahead:
- Evaluate Group Revenue: Confirm whether your group exceeds the €750 million global threshold.
- Map UAE Operations: Identify all UAE-based entities and review their tax profiles, Free Zone status, and qualifying activities.
- Calculate Effective Tax Rate: Assess if your UAE operations will fall below the 15% threshold in 2025.
- Prepare for Reporting: Begin updating systems and processes to meet upcoming reporting and compliance requirements aligned with the OECD's global standards.
Should You Be Concerned if You’re Not an MNE?
For most UAE-based SMEs and family-owned firms, this tax will not apply.
However, if you are advising large groups or anticipate future growth to that level, it is worth understanding the new rules.
Conclusion
The additional guidance from the Ministry of Finance provides welcome clarity.
While many UAE-based businesses are outside the scope, those within should use the remainder of 2024 to prepare.
Our team can help you assess how the new rules apply and support your planning.
Get in touch today if your business or your clients operate as part of a global group.
Dubai is on track to attract more than 7,100 new millionaires in 2025, according to wealth migration reports. This makes it one of the fastest-growing wealth hubs in the world, with inflows driven by favourable tax policies , a premium lifestyle, and world-class infrastructure. But this isn’t just a trend—it’s a shift in how the global elite choose where to live, invest, and raise families. Why Dubai? Several factors make Dubai uniquely attractive for high-net-worth individuals (HNWIs): Zero income tax and capital gains tax Golden Visa programme offering 10-year residency Pro-business environment with minimal red tape English is widely spoken, and common law principles are applied in financial centres Excellent connectivity, education, and healthcare Dubai offers both a haven and a launchpad—safety, luxury, and opportunity underpinned by legal certainty. Who Is Moving? In 2025, Dubai is attracting: Entrepreneurs from Europe and South Asia Family offices from the UK, Russia and China Fintech, crypto, and AI professionals seeking regulatory clarity and innovation-friendly policy Retirees and global nomads looking for long-term stability and tax-neutrality This group isn’t just wealthy—they’re mobile, young, and digitally enabled. The Role of the Golden Visa Dubai’s Golden Visa allows investors, entrepreneurs, and professionals to secure long-term residency without the need for local sponsorship. Recent updates to the programme have made it more accessible: Minimum investment thresholds have been reduced Residency can now extend to family members Options exist for property owners, business founders, and talented individuals This flexibility makes it ideal for UHNWIs planning for residency-based tax efficiency. Impact on Dubai’s Economy and Society The arrival of more than 7,000 millionaires in a single year is having noticeable effects: Rising demand for luxury real estate in areas like Palm Jumeirah, Emirates Hills, and Dubai Hills Booming demand for private education and bespoke health services Growth in wealth management, private banking, and family office services These inflows are also reshaping Dubai’s global image—from oil hub to wealth capital. Conclusion: A Deliberate Strategy That’s Working Dubai’s rise isn’t accidental. It reflects years of careful planning, legal reform, and international marketing. As countries like the UK and Switzerland tighten tax rules and public sentiment turns against the ultra-rich, Dubai is doing the opposite—rolling out the welcome mat for global wealth. At Mosaic Chambers Group, we support clients across borders—not only in the UAE, but around the world. With hubs in both Dubai and the UK, our relocation and corporate services extend globally, making us the trusted partner for businesses serious about long-term growth. Get in touch below to find out more. DOWNLOAD OUR RELOCATION GUIDE
Imagine working from a sunny beach café or a swanky co‑working hub, taking on clients from around the world, and doing it all legally in a vibrant, tax‑friendly place. That’s exactly what the UAE Freelance Visa offers. Whether you’re a coder in Cape Town, a designer in Dublin, or a writer in Worthing, this visa opens the door to a flexible, exciting lifestyle in Dubai or any of the seven emirates. What Is the UAE Freelance Visa? The UAE Freelance Visa is a work permit that lets skilled professionals live and operate independently in the UAE for up to two years, renewable each year. It’s available in free zones like Dubai Airport Free Zone (DAFZ), popular with media, tech, marketing, education, and creative professionals Top Benefits at a Glance Legal and flexible work status: Enjoy working freelance—no local sponsor or employer needed Affordable setup: Costs are very reasonable Tax-free salary: Keep 100% of your earnings—no personal income tax in the UAE Fast approval: The visa can be processed in 30 days Family included: Once you meet the income requirement, you can sponsor your spouse, children, even staff Future residency: Freelance visa holders often qualify for the Golden Visa, offering a long-term stay Co‑working access: Free zones offer affordable co-working spaces—no need for an office lease offer aff Global connections: Join events, meet international clients, or land job offers from major firms in the region Who Can Apply? You’re eligible if you: Are 21 or older with a valid passport. Hold a degree or diploma and relevant work experience Have a portfolio showing clients mainly based abroad. Pass a medical exam and provide police clearance No need to be employed by a company—the DAFZ issues the freelance permit you need Why This Is a Great Option The freelance visa is ideal if you: Want total creative and scheduling freedom. Prefer remote work and managing your own clients. Like fast setup at lower cost than a full company. Want to live with family in a modern, safe, tax-free city. Have clients around the globe and want your freelance brand taken seriously. We Can Help You — Anywhere in the World At Mosaic Chambers Group, we're relocation specialists with global reach. We help you: Decide which country's freelance or remote‑work visa fits you best. Handle paperwork smoothly—from permit to Emirates ID and bank account. Book a call now to explore your options and begin your adventure—whether that's Dubai, Canada, Portugal, or somewhere else entirely! With the UAE Freelance Visa, you get freedom, opportunity, and a base in a global hub—all while earning from clients around the world. Wherever you dream of living and working, we’ll help you make it happen. DOWNLOAD OUR RELOCATION GUIDE