Make DMTT Tax Compliance Easier

Arabian Wingz provides straightforward guidance on DMTT tax compliance, helping businesses understand their tax responsibilities, identify applicable requirements, and prepare for compliance with greater confidence.

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What is Domestic Minimum Top-Up Tax (DMTT)?

A Domestic Minimum Top-Up Tax is the UAE’s major taxation policy step for multinational enterprises operating in the Emirates. It was designed to align the UAE with the OECD/G20 Pillar Two framework. As per the requirements, DMTT ensures that large multinational enterprises in the UAE pay at least a 15% effective tax rate (ETR) on profits arising. The country implemented this tax because of global pressure to address profit shifting and tax base erosion. Therefore, the execution of this tax ensures that MNEs do not exploit low-tax jurisdictions to reduce their tax liabilities.

At Arabian Wingz, our tax experts help enterprises with end-to-end DMTT tax registration in UAE. We provide practical guidance for tax and compliance requirements, help you understand key responsibilities, prepare the necessary information, and manage tax advisory needs with the utmost accuracy and transparency.

Who is Affected by the UAE Domestic Minimum Top-Up Tax?

The domestic minimum top-up tax is not applicable to all regular businesses operating in the UAE. It specifically targets large multinational enterprises that fulfill certain conditions. Here is a closer look at entities affected by the implementation of this tax policy:

However, the most affected industries in case of DMTT tax are technology, financial services, and hospitality.

Why the UAE DMTT Matters for Your Business?

The introduction of domestic minimum tax top-up is not an ordinary responsibility. It is a chance to enhance business credibility and competitiveness in the UAE market. Here is why it matters:

What Should Multinationals Do to Prepare for DMTT Tax?

With the introduction of domestic minimum top-up tax, multinational companies need to act promptly to ensure compliance and optimize their tax positions. Here are some of the key measures that need to be taken:

Perform a Pillar Two Impact Assessment

The first step involves analyzing your international operations to determine entities that fall under the €750 million revenue threshold. After this, calculate the ETR for the UAE subsidiaries.

Adjustment of Financial Reporting

The next step involves ensuring FY24 financial statements include disclosures related to potential DMTT impacts. Arabian Wingz experts can help entities with this service.

Upgrade Systems for Compliance

In accordance with the DMTT tax requirements, evaluate and improve systems to extract relevant data that is needed for the €750 million revenue threshold.

Partner with Tax Advisors

Partner with professional tax advisors like Arabian Wingz to navigate the complexities of Pillar Two and ensure compliance with the UAE’s tax framework in a complete manner.

Prepare Your Business for DMTT

Stay informed and prepared with Arabian Wingz. Our advisory team can guide your business through DMTT registration, compliance, documentation, and related tax requirements.

Key Compliance Requirements for UAE Businesses at a Glance

Understanding and fulfilling DMTT requirements could be a challenging task. This is where professional tax experts of Arabian Wingz help. We help you with proper reporting, accurate records, timely compliance, and other major requirements as follows:

Requirement	What Businesses Need to Do	Key Information
GloBE Information Return (GIR)	Submit the required DMTT information to the UAE FTA.	Report profits, taxes, ETR, and top-up tax.
Financial Reporting	Maintain financial records according to applicable GloBE rules.	Keep financial statements, tax calculations, and adjustments.
Documentation	Maintain proper records of relevant transactions and calculations.	Include intra-group transactions and supporting documents.
Deadlines & Penalties	Monitor filing deadlines and complete requirements on time.	Late or incorrect compliance may lead to penalties.

DMTT Penalties and Current Relief Period

DMTT penalties follow the same penalty framework as the Corporate Tax. However, there is an availability of temporary relief. Businesses can avoid penalties for DMTT and Pillar Two information returns for a timeline starting on or before 31 December 2026. This is possible if they take reasonable steps to follow the rules correctly. However, it is not applicable to periods ending after 30 June 2028.

With the help of Arabian Wingz experts, large corporations can get practical guidance on DMTT requirements, registration, reporting, and compliance. Our advisors help enterprises understand applicable rules, prepare the required information, identify important deadlines, and take suitable steps to reduce the risk of errors and penalties in the best way possible.

Why Choose Arabian Wingz For DMTT Tax Compliance?

Navigating DMTT regulations can be difficult for multinational businesses. That is why Arabian Wingz provides simple, effective advisory services to assist in understanding DMTT regulations. We can help you in the following ways:

Complete DMTT Guidance

At Arabian Wingz, we simplify DMTT regulations to make them understandable and informative to businesses regarding their DMTT responsibilities. This ensures that business operations adhere to the tax framework, which further prevents the risk of penalties or fines.

DMTT Registration Support

Our tax advisors provide end-to-end support for the DMTT tax registration. Even if its upgrading the system for compliance, ensuring FY24 financial statements, or calculating ETR, we are there to support you at every stage.

Pillar Two Advisory

We help multinational groups understand Pillar Two framework requirements and evaluate how DMTT rules may affect their UAE entities, tax position, reporting responsibilities, and overall compliance approach.

Planning for DMTT Compliance

Our group of experts helps multinational corporations plan their DMTT compliance obligations beforehand by identifying the requirements of the DMTT policies and informing them about how the documentation is expected to be prepared.

Guidance on Reporting & Filing

Arabian Wingz gives complete advisory with respect to DMTT reporting and filing. This further allows enterprises to keep their financial statements, tax calculations, documents, and any necessary supporting materials in an organized manner.

Practical Business-Focused Advice

We follow a personalized approach for your business operations rather than giving generic recommendations that can be applied to all multinational corporations. This allows companies to understand their DMTT obligations and take well-informed actions.

Frequently Asked Questions (FAQ's)

Who is generally covered by UAE DMTT?

Domestic minimum top-up tax is usually applied to those entities that are part of multinational groups. The business must fulfil the EUR 750 million global revenue threshold under the applicable Pillar Two framework.

Can a UAE company be affected by DMTT if its parent company is outside the UAE?

Yes. A UAE entity can be impacted when it is part of a multinational group that qualifies for DMTT compliance, even if the group’s ultimate parent entity is located in another nation.

What is the GloBE Information Return?

The GloBE Information Return (GIR) is a report that contains all the information that is needed to apply the Pillar Two regulations. It can include details about income, taxes, effective tax rates, and top-up tax.

Can Arabian Wingz help multinational groups with Pillar Two matters?

Yes. Our top tax advisors can provide practical guidance to multinational groups on comprehending Pillar Two and its potential impact on their UAE entities and DMTT responsibilities.

Does Arabian Wingz offer customized DMTT advisory?

Yes. Arabian Wingz provides business-focused advisory guidance on the basis of the client’s structure, requirements, and circumstances rather than using the same approach for every business.

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