‘Digital Public Consultation on Global Minimum Tax in UAE Initiated by Ministry of Finance’

The UAE Ministry of Finance (MoF) has initiated a digital public consultation to gather feedback from stakeholders on the implementation of the Global Minimum Tax (GMT) or Global Anti-Base Erosion Model Rules (Pillar Two) (GloBE Rules), along with other tax matters in the UAE.

From March 15th to April 10th, 2024, interested parties can participate in the consultation through the Ministry’s website or the UAE Government Portal. This move signifies the Ministry’s commitment to engaging with various stakeholders, including multinational groups, advisors, service providers, and investors.

The consultation is divided into two sections. The first part aims to collect input on potential policy options for implementing the GloBE Rules in the UAE, particularly focusing on the creation of a domestic minimum tax. The Organization for Economic Co-operation and Development (OECD) has provided the GloBE Model Rules as a blueprint for jurisdictions looking to adopt qualified regulations.

The second segment of the consultation seeks to gather opinions on introducing substance-based incentives within the UAE Corporate Tax regime. To facilitate understanding among stakeholders and ensure informed feedback, the Ministry has issued a briefing document on the Global Minimum Tax alongside the consultation.

The Ministry encourages stakeholders to provide clear and concise feedback with supporting examples, data, or information by the April 10th deadline. Responses will be treated confidentially and will not be made public.

In related news, the Ministry of Economy has recently unveiled a new mechanism aimed at safeguarding digital intellectual property rights.