UAE Launches Digital Consultation on Global Minimum Tax Implementation

The UAE Ministry of Finance (MoF) has initiated a digital public consultation to gather feedback on the implementation of the Global Minimum Tax (GMT) or Global Anti-Base Erosion Model Rules (Pillar Two), alongside other tax-related matters. This move, announced on March 15, invites stakeholders to participate in the consultation, accessible through the ministry’s website or the UAE’s Government Portal, until April 10.

The objective of this digital consultation is to engage with a wide range of stakeholders, including multinational corporations, advisors, service providers, and investors. By soliciting their views, the MoF aims to ensure that the implementation of tax policies aligns with the interests and needs of various parties involved in the UAE’s economic landscape.

Divided into two main parts, the consultation first seeks input on potential policy design options for integrating the GloBE Rules into the UAE’s tax framework. Specifically, stakeholders are invited to provide insights on the development of a domestic minimum tax, leveraging the GloBE Model Rules published by the Organisation for Economic Co-operation and Development (OECD) as a reference.

The second part of the consultation focuses on gathering opinions regarding the introduction of substance-based incentives within the UAE Corporate Tax regime. By understanding stakeholders’ perspectives on these incentives, the MoF aims to shape tax policies that promote economic growth, incentivize investment, and foster a competitive business environment in the UAE.

To facilitate stakeholders’ understanding of the proposed rules and policies, the MoF has released a comprehensive Global Minimum Tax briefing document alongside the consultation. This document serves as a guide for stakeholders, enabling them to provide informed feedback that reflects their interests and concerns.

By leveraging digital platforms for this consultation, the MoF aims to maximize participation and engagement from stakeholders across the UAE and beyond. This inclusive approach underscores the government’s commitment to transparency, accountability, and stakeholder involvement in decision-making processes related to tax policy and regulation.

The launch of this digital public consultation reflects the UAE’s proactive stance in adapting to global tax standards and regulations, such as the GMT and GloBE Rules. By seeking input from stakeholders, the government demonstrates its commitment to ensuring that tax policies are balanced, effective, and conducive to the UAE’s economic growth and development objectives.

As the consultation period unfolds, stakeholders are encouraged to actively participate and contribute their insights to shape the future of tax policy in the UAE. By engaging in this collaborative process, stakeholders can play a vital role in shaping a tax framework that supports sustainable economic growth, fosters investment, and enhances the UAE’s competitiveness on the global stage.