The UAE Ministry of Finance (MoF) has initiated a digital public consultation to collect viewpoints from relevant stakeholders on the implementation of the Global Minimum Tax (GMT) or the Global Anti-Base Erosion Model Rules (GloBE Rules). This consultation, which is open from March 15 to April 10, is accessible via the ministry’s website or the UAE’s Government Portal.
The MoF’s decision to conduct this consultation underscores its commitment to inclusive decision-making, especially on significant policy changes such as the implementation of GloBE Rules. Recognizing the impact of these rules on multinational groups, advisors, service providers, and investors operating in the UAE, the ministry is seeking broad input to ensure that the policy design aligns with the needs and expectations of all stakeholders.
The consultation is divided into two distinct segments. The first part aims to gather insights concerning the potential policy design options for implementing the GloBE Rules in the UAE, specifically focusing on the development of a domestic minimum tax. The GloBE Model Rules, published by the Organisation for Economic Co-operation and Development (OECD), provide a template for jurisdictions intending to implement qualified rules.
The second segment of the consultation seeks to understand stakeholders’ perspectives on introducing substance-based incentives within the UAE, which would be a part of the UAE Corporate Tax regime. These incentives are expected to encourage investments and economic activities aligned with substantial economic presence within the country.
To ensure stakeholders are well-informed and can provide meaningful feedback, the ministry has also issued a Global Minimum Tax briefing document alongside the consultation. This document aims to clarify the nuances of the rules and facilitate a deeper understanding of the potential impacts and benefits of their implementation.
This initiative by the UAE MoF reflects the country’s proactive approach in aligning its tax policies with global standards while ensuring that these policies support its economic objectives and the interests of its business community. The consultation process is a critical step towards the transparent and effective implementation of these significant global tax changes in the UAE.
