UAE Corporate Tax Reform 2025 – What Businesses Need to Know

The implementation of the UAE Corporate Tax Reform 2025 represents a fundamental transformation in the economic landscape. The new tax laws aimed towards harmonising to international standards and enhancing financial transparency. In January 2025, the largest multinational corporations with revenue exceeding EUR750 million are required to pay an 15% Minimum Domestic Top-up Tax in line with the Organization for Economic Co-operation and Development's Pillar Two framework. Additionally it is the corporate tax of 9% that is imposed by the federal government on tax for annual earnings over AED 375,000 will continue to apply for the vast majority of UAE companies, which includes the ones operating in free zones if they satisfy certain qualifying requirements.

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