Domestic Top-up Tax Advisory & Compliance Support
Introduction of the DMTT regime for Multinational Enterprises (MNEs) is a monumental change in the tax legislation of the country, which cements the UAE’s commitment to the OECD Pillar Two Global Minimum Tax Initiative.
Effective from 1 June 2025, the DMTT ensures that large multinational enterprise (MNE) groups, with consolidated global revenues of at least EUR 750 million, pay a minimum effective tax rate of 15% on profits arising in the UAE.
At Young Global, we help multinational groups interpret the DMTT rules, prepare calculations, and assess the applicability of reliefs and exemptions to ensure the readiness of the entities for the upcoming regime.
Common Pitfalls in DMTT
Large MNEs face complex calculations, potential additional tax burdens, and compliance risks under the DMTT regime, especially with interactions between standard CT rates and the 15% minimum, leading to penalties and scrutiny.
DMTT Solutions
Our services include exposure evaluations, top-up tax computations, and relief assessments. Features encompass compliance filings and ongoing monitoring. Benefits deliver minimized liabilities, full regulatory adherence, and strategic optimization for global tax efficiency.
How we can help you with
At Young Global, we provide comprehensive DMTT Advisory and Compliance Support to ensure full readiness for the Pillar 2 regime applicable to the covered entities. Our team ensures that the taxpayers remain compliant, strategically optimized and tax efficient, and ready for the global minimum tax transition.
FAQs to Guide Your Business Decisions
Concise insights on our core services
Generally, large MNE groups with consolidated global revenues of at least EUR 750 million in two of the previous four fiscal years.
To ensure large MNEs pay a minimum effective tax rate of 15%, and prevent base erosion and profit shifting to low-tax jurisdictions.
For financial years beginning on or after 1 June 2025, as announced by the UAE Ministry of Finance.
Whilst the standard CT regime envisages a 0% and 9% tax rate, the DMTT ensures that eligible entities that are part of large MNEs pay an overall minimum tax of 15% on profits earned in the UAE.
MNE groups will be required to file DMTT calculations and information returns, likely alongside or in addition to their CT return. The FTA/MoF is expected to publish more guidance on this regard in the due course.
Yes, DMTT regime would override the Free Zone relief. As such, the eligible entities will be subject to DMTT on income taxed below 15% rate.
Yes, DMTT regime would override the Free Zone relief. As such, the eligible entities will be subject to DMTT on income taxed below 15% rate.
