The UAE's headline corporate tax rate is 9%. For the largest multinational groups it is now effectively 15%, through the Domestic Minimum Top-up Tax (DMTT), the UAE's version of the OECD's global minimum tax, known as Pillar Two.
Who is in scope
The DMTT applies to UAE entities of multinational groups with consolidated revenue of EUR 750 million or more in at least two of the four preceding years. It applies to financial years starting on or after 1 January 2025. The legal basis is Federal Decree-Law 60 of 2023 and Cabinet Decision 142 of 2024.
If the group's effective tax rate in the UAE is below 15%, the UAE collects the difference itself, rather than leaving it for another country to collect.
Registration: a separate step, with a near deadline
Being registered for corporate tax does not register you for DMTT. Under FTA Decision 12 of 2026, in-scope groups must register within seven months of the end of their first in-scope financial year. For years that ended before 30 April 2026, which includes calendar 2025, the deadline is 30 November 2026. One designated UAE entity can register for the whole UAE group.
Returns
DMTT returns and the GloBE Information Return follow the OECD timetable, with a longer window for the first year. For a calendar-2025 group the first filing falls in mid-2027. Confirm your exact dates with the FTA's current guidance.
What the CFO needs now
- Confirm scope using the group's consolidated revenue history.
- Register before the deadline, or confirm the group's designated filing entity has.
- Start the data work early. Pillar Two calculations need entity-level financial data, deferred tax and adjustments that most ledgers do not hold in one place.
- Check how free zone 0% income and incentives affect your UAE effective tax rate.
How iConsult can help
We help finance teams map entity data, model the UAE effective tax rate and prepare the supporting schedules. See our tax advisory services or book a free consultation.
This article is general information, not legal or tax advice. It reflects the rules as we understand them on the date shown; laws and guidance change, so check the current position or talk to us before you act.