UAE's new tax regulations: DMTT and What tax leaders need to know

The UAE has been progressively updating its tax system, starting with Value Added Tax (VAT) in 2018 at 5%, and followed by Corporate Income Tax (CIT) in 2023, with a standard 9% rate (and 0% for smaller businesses and qualifying free zones). Now, the UAE is introducing the Domestic Minimum Top-up Tax (DMTT) — effective from February 6, 2025 — in line with the OECD’s Pillar Two framework. This regulation imposes a 15% global minimum tax on multinational enterprises (MNEs) with consolidated global revenues exceeding €750 million. For finance and tax leaders at companies with multiple entities, these changes are more than just a compliance issue. They signal a shift in how corporate taxes are managed and reported. Let’s go ahead and break down what this means for your business. 

The consequences for multinational enterprises and advisory firms? 

The new UAE tax regulations under Pillar Two creates challenges for businesses, accounting firms and tax advisors alike.  

With the introduction of the Domestic Minimum Top-up Tax (DMTT), multinational enterprises (MNEs) - operating in the UAE must proactively address these changes to avoid financial and compliance risks. This will require strategic guidance from advisory firms and tax advisors to reassess their tax structures, to ensure compliance with the 15% minimum effective tax rate, and navigate complex cross-border tax implications.  

Businesses must strengthen their tax strategies by incorporating tailored Pillar Two impact assessments, optimizing transfer pricing strategies, and supporting the preparation of GloBE Information Returns.  

Additionally, there will be an increased demand for data management and reporting solutions to meet the new compliance requirements, positioning tax advisors as critical partners in helping businesses mitigate risks and avoid costly penalties. 

Infographic adapted from: Tax Challenges Arising from the Digitalisation of the Economy – GloBE Information Return (January 2025). (2025). In OECD/G20 base erosion and profit shifting project. https://doi.org/10.1787/a05ec99a-en 

How Keeyns helps you stay in control 

With the UAE’s tax landscape evolving, having a centralized tax collaboration platform is no longer a luxury, it’s a necessity. Keeyns is a tax tech platform that empowers finance and tax leaders by: 

• Centralizing tax data: A single source of truth for all entities, reducing manual errors and ensuring data consistency. 
  
• Enhancing collaboration: Governed by predefined roles and rights, Keeyns allows multiple stakeholders to work seamlessly within a single source of truth. 
• Providing robust audit trails: Full visibility into tax-related actions helps mitigate risks, ensuring your business remains compliant and audit-ready. 

As the UAE implements Pillar Two, Keeyns equips teams to stay compliant, adapt strategies, and minimize risks—all while maintaining control over your tax processes. 

Prepare your business for the 2025 tax reforms 

The UAE’s new tax regulations demand a proactive approach. Finance and tax leaders must prepare now by assessing their current structures, revisiting tax planning strategies, and investing in the right tools to manage multi-entity compliance. 

Stay ahead of the changes — Book a demo with Keeyns today. 

Sources:

• Alvarez & Marsal. (2025). MIDDLE EAST TAX ALERT | UAE | Pillar 2 legislation. In Alvarez & Marsal | Management Consulting | Professional Services. https://www.alvarezandmarsal.com/insights/middle-east-tax-alert-uae-pillar-2-legislation 
• PricewaterhouseCoopers. (n.d.). UAE implements Pillar Two. PwC. https://www.pwc.com/m1/en/services/tax/me-tax-legal-news/2025/uae-implements-pillar-two.html 
• UAE issues domestic minimum top-up tax legislation. (n.d.). https://globaltaxnews.ey.com/news/2025-0505-uae-issues-domestic-minimum-top-up-tax-legislation