UAE's Tax Policy Evolution: Have Your Say in Digital Consultation
The UAE Ministry of Finance has initiated a digital public consultation aimed at soliciting feedback from relevant stakeholders regarding the implementation of the Global Minimum Tax or Global Anti-Base Erosion Model Rules, along with other tax-related matters in the UAE.
Scheduled to run from March 15, 2024, to April 10, 2024, this consultation seeks to engage a broad spectrum of stakeholders, including multinational corporations operating within the UAE, as well as advisors, service providers, and investors. Accessible through both the Ministry's official website and the UAE's Government Portal, this digital platform underscores the Ministry's commitment to transparency and inclusive decision-making processes.
The consultation process comprises two distinct phases. Firstly, stakeholders are invited to share their insights and perspectives on policy design options for implementing the GloBE Rules in the UAE, with a specific focus on developing a domestic minimum tax. The Organisation for Economic Co-operation and Development has provided the GloBE Model Rules as a framework for jurisdictions intending to adopt qualified rules in this regard.
Secondly, the consultation aims to gather stakeholders' opinions on the introduction of substance-based incentives within the UAE Corporate Tax regime. These incentives are envisioned to augment the existing framework and promote substantive economic activities within the country.
To ensure stakeholders are well-informed and equipped to provide meaningful feedback, the Ministry has released a briefing document on the Global Minimum Tax alongside the consultation process.
In issuing this call for consultation, the UAE Ministry of Finance emphasises the importance of clear and concise feedback, supplemented where possible with examples, data, or other pertinent information. Responses are to be submitted via the Ministry's website by April 10, 2024. Importantly, all submissions will be treated as confidential and will not be made public.
This initiative underscores the UAE's proactive approach towards adapting to changing international tax standards while boosting a conducive environment for economic growth and investment within the country.
