UAE mulls new tax: April 10 last day to submit public feedback

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The Dubai International Financial Centre.

The last day to submit public feedback on implementing the global minimum tax in the UAE is on Wednesday (April 10), with the Ministry of Finance seeking corporate feedback on the matter.

The consultation is open to all stakeholders, but the ministry is “particularly keen” to hear from the “global community” of multinational groups operating in the UAE, along with their advisors, service providers and investors. Responses must be submitted via the ministry’s website or the UAE Government portal.

According to the ministry, submissions and views from the public will help it decide on the implementation of global minimum tax in the UAE and other tax matters.

The consultation is split into two parts — first, to gather the views of stakeholders concerning the potential policy design options for its implementation and the development of a domestic minimum tax.

The second part of the consultation is to understand stakeholders’ views on the introduction of substance-based incentives to be applied in the UAE, which would form part of the UAE Corporate Tax regime.

What is global minimum tax?

According to the UN Trade and Development (UNCTAD), global minimum tax is a tax standardization that was agreed by nearly 140 countries in late 2021. It imposes a 15 percent global minimum tax for large multinational companies, which UNCTAD called a “landmark deal to prevent ‘a race to the bottom’ as governments compete to attract foreign companies.”

“The global tax deal will target particularly low-taxed income investment hubs. Under the new rules, for example, a multinational benefitting from a low-tax agreement with the local government could face higher taxes in its parent company’s jurisdiction,” according to UNCTAD. ICA/Expat Media

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