UAE Domestic Minimum Top-Up Tax (DMTT) 2025: Impact on Multinationals

Following the 9% federal corporate tax on business profits exceeding AED 375,000, the UAE introduced a 15% Domestic Minimum Top-Up Tax (DMTT) in 2025 targeting large multinational enterprises (MNEs).

The DMTT aligns the UAE with the OECD's Pillar Two global minimum tax framework, ensuring MNEs pay at least 15% effective tax regardless of where profits are booked. This targets base erosion and profit shifting arrangements.

All tax filings under DMTT must be based on audited financial statements prepared under IFRS. Finance teams must ensure accounting systems are fully aligned and audit-ready. MNEs need centralised oversight and internal controls to monitor tax obligations across jurisdictions.

The reform does not affect small or medium UAE businesses, which remain subject only to the 9% standard corporate tax rate on profits above AED 375,000.