The UAE Ministry of Finance has introduced updates to the Federal Decree-Law on Corporate Taxation to boost growth and innovation. Key changes include:

1. Domestic Minimum Top-up Tax (DMTT)

   Starting January 1, 2025, this tax ensures a 15% minimum effective tax rate for multinational enterprises (MNEs) with global revenues of €750 million or more aligning the UAE with OECD standards.

   

   Source: Economy Middle East

2. Proposed Tax Incentives

• R&D Tax Incentive: From January 1, 2026, a 30-50% refundable tax credit to support research and development.

• High-Value Employment Tax Credit: From January 1, 2025, a refundable tax credit for senior roles that contribute significantly to the economy.

These measures aim to strengthen the UAE’s competitiveness, encourage investment and promote innovation. The proposals are pending legislative approval.