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UAE to Impose New Tax on Large Multinational Companies

The new tax is part of the changes in the country's corporate tax law.

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UAE to Impose New Tax on Large Multinational Companies

The UAE will impose a fifteen percent tax on large multinational enterprises, which is part of the changes in its corporate tax law. 

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These companies will have to pay a 15 percent tax on the profits they generate in the country, which has increased from the current corporate tax rate of nine percent. 

The new tax will be imposed from Jan. 1, 2025 or after that, according to the Ministry of Finance. 

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The domestic minimum top-up tax will be imposed on multinational enterprises with consolidated global revenues of $793 million or more in at least two or four financial years preceding the financial year in which the tax was implemented. 

The UAE introduced the federal corporate tax of nine percent from the financial year beginning on or after Jun. 1, 2023. Companies with an income of AED 375,000 have been subject to the taxable bracket, but companies with taxable profits below that level have been subject to zero percent tax. 

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