A new tax is coming to the UAE in 2025

Tax. A word many of us here in Dubai are lucky enough to not hear very often.

Well, that was until the recent announcement of corporate tax, last year.

Following the incorporation of corporate tax in the market, the UAE has now announced another tax, starting January 1st 2025 - the UAE will roll out a Domestic Minimum Top-up Tax (DMTT) to supercharge innovation and attract top-tier talent!

The new tax: What do you need to know?

The UAE will implement a new tax called the Domestic Minimum Top-up Tax (DMTT) for large multinational companies in the UAE earning over €750 million (AED 2.9 billion) in global revenue.

This tax ensures these companies pay at least 15% tax on their profits in every country they operate in, which is in line with international rules set by the Organisation for Economic Co-operation and Development (OECD).

The goal? To create a transparent and fair tax system whilst keeping the UAE at a competitive level on the global stage.

Why these changes matter?

The UAE is committed to staying ahead as a global business hub.

By introducing the DMTT, it works in line with international standards while maintaining its reputation as a top choice for businesses and investors.

But wait - There are incentives too!

While tax isn’t something many of us would look forward to, in the UAE, everything comes with a positive touch and this time around, we can expect game-changing incentives aimed at sustainable growth and innovation, such as:

1. R&D tax incentive

For the tax periods starting January 1, 2026, this incentive could offer 30–50% refundable tax on qualifying R&D (research and development) activities conducted in the UAE.

Imagine the boost this could bring to startups and established companies looking to bring in new technologies or products to the UAE.

2. Incentives for high-value employment activities

Beginning January 1, 2025, companies that engage in high-value employment activities will benefit from refundable tax tied to eligible salary costs. This includes C-suite executives and other senior management working in core business functions that add significant value to the UAE economy.

Why are businesses choosing the UAE?

These initiatives are just a few reasons why the UAE is one of the most attractive destinations for global businesses, but there are more such as:

• Ease of doing business
• Commitment to innovation and investments
• Global competitiveness and constant economic growth

Now, isn’t that great for businesses?

If you are planning to relocate your business to the UAE, you can drop our commercial team a line, who can assist you in finding the right property as well as set up your business for you!