Classification of the minimum supplementary tax in the Emirates within "Qualified transitional situation"Certified in the Organization for Economic Cooperation
Abu Dhabi, August 25 / WAM / The Organization for Economic Cooperation and Development has classified the minimum local supplementary tax in the UAE “DMTT” as part of the central registry of legislation taking place on the “qualified transitional situation”.
The Ministry of Finance said in a press statement today, that the UAE’s commitment to international tax standards, in addition to the praise of the Organization for Economic Cooperation and Development in the tax state system, enhances its position as a leading global business and investment center, and supports its strategic agenda for sustainable development.
She emphasized that this new classification will enhance the clarity of the vision in front of multinational institutions in the minimum local supplementary tax, as this system provides not imposing foreign taxes on the profits of entities belonging to those institutions operating in the country, in addition to the acceptance of other countries the supplementary tax due in the country on these entities, which leads to reducing the risks associated with multiple scrutiny, challenges and tax disputes Complex and expensive.
It is noteworthy that the minimum local supplementary tax in the country has become eligible to benefit from the safe haven mechanism within the second pillar applied by the Organization for Economic Cooperation and Development, which reduces the administrative burden on both multinational institutions and tax authorities alike, by exempting the entities under the state from conducting accounts related to supplementary tax in other countries.
The announcement of this qualified transitional situation is an important step that provides more transparency and clarity for multinational institutions operating in the UAE.
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