On September 13, 2023, a regional forum on GMT Pillar 2 was held in the UAE. During which it was decided to abandon the introduction of a minimum corporate tax in the Emirates in 2024. Although the UAE has joined the OECD initiative, the prospects for its introduction remain closed.
Let us recall that in 2021 the OECD invited member countries to introduce the concept of a minimum corporate tax, setting the rate at no less than 15%.
The joint final statement of the representatives of the UAE and the OECD did not look optimistic. The parties agreed that broad consultations on the introduction of GMT would continue in the Emirates, but the actual timing of this event was not specified. There is no official information.
The new business tax scheme, adopted in the summer of 2023, increases the corporate tax rate to 9%, which is less than the threshold determined by the OECD. Perhaps the UAE is not interested in introducing GMT Pillar 2 or is considering this option, but in the distant future.