The UAE Ministry of Finance announced that the Organisation for Economic Co-operation and Development (OECD) has officially recognised the country’s Domestic Minimum Top-up Tax (DMTT) by publishing it on its Central Record of Legislation with Transitional Qualified Status.
The recognition underscores the UAE’s commitment to international tax standards and strengthens its position as a leading global hub for business and investment. The Ministry said the move also aligns with the nation’s sustainable development agenda.
With the OECD’s qualified status, multinational enterprise (MNE) groups operating in the UAE gain certainty that foreign tax will not be imposed on UAE profits. Instead, their top-up tax liabilities will be accepted in the UAE, reducing the risk of multilateral audit disputes.
The UAE’s DMTT has also qualified for the OECD Pillar 2 safe harbour, easing compliance by removing the need for top-up calculations in other jurisdictions for entities based in the country.
Officials noted that the recognition provides clarity and stability for businesses, reinforcing the UAE’s attractiveness as a destination for global investment.
News Source: Emirates News Agency
