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The UAE Ministry of Finance issued Ministerial Decision No. 96 of 2026 on 22 June to adopt the OECD consolidated commentary on global anti-base erosion model rules for use with Cabinet Decision No. 142 of 2024 on the imposition of top-up tax on multinational enterprises, the ministry’s published text shows. The decision repeals the prior Ministerial Decision No. 88 of 2025 and applies to all fiscal years beginning on or after 1 January 2025, according to the document signed by Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini. A client briefing circulated by Simmons & Simmons highlighted the update as providing further alignment with the OECD inclusive framework on base erosion and profit shifting that the UAE joined in 2021.
The Federal Tax Authority followed with Decision No. 12 of 2026 issued on 16 July that establishes registration, deregistration and notification deadlines for entities within the scope of the domestic minimum top-up tax, a Crowe UAE assessment published in September reported. Entities must register no later than seven months after the end of their first in-scope fiscal year, with transitional relief allowing registration by 30 November 2026 for those whose fiscal year ended before 30 April 2026, the authority’s decision stated. The filing framework permits a domestic designated filing entity to handle submissions for group members while each constituent entity still requires individual analysis, Crowe UAE noted.
The top-up tax regime under Cabinet Decision No. 142 of 2024 requires multinational groups with consolidated revenue of at least 3.15 billion dirhams in at least two of the four preceding fiscal years to meet a 15 percent minimum effective tax rate, according to START DXB analysis released in June. The domestic tax tops up any shortfall below that threshold after application of the standard 9 percent corporate tax rate on qualifying income, the analysis indicated. START DXB figures show that roughly 90 percent of UAE businesses fall outside the scope because they do not meet the multinational size test or operate as standalone entities.
Simmons & Simmons reported that the new ministerial guidance clarifies several technical elements drawn directly from the OECD 2026 consolidated commentary on the GloBE rules. The law firm’s client note emphasised the need for affected groups to review their UAE operations against the updated standards to prepare for both registration and eventual top-up tax filings. The briefing also addressed the treatment of permanent establishments, joint ventures and minority-owned entities that may require separate registration under the Federal Tax Authority rules.
The UAE has so far implemented only the qualified domestic minimum top-up tax and has not introduced an income inclusion rule or undertaxed payments rule, a KPMG review from August 2025 found. This position aligns with the absence of a controlled foreign company regime in the federal corporate tax law, the review stated. The Ministry of Finance has indicated it will monitor the domestic tax’s performance before deciding on any future expansion of the framework, according to the KPMG assessment.
The Federal Tax Authority’s Top-up Tax Guide on Scope and Registration issued in August details the categories of UAE entities that must register, including constituent entities, permanent establishments and certain reverse hybrid structures, the authority’s publication shows. Each qualifying entity receives its own top-up tax registration number even when a designated filing entity coordinates group compliance, the guide explained. Late registration applications may still be processed with effect from the original due date in specified circumstances, the authority added.
Participation in the OECD/G20 inclusive framework now covers more than 140 jurisdictions that have committed to the global minimum tax initiative, according to OECD published membership data. The UAE’s measures form part of that coordinated effort to address base erosion while preserving the country’s attractiveness for international business, the Simmons & Simmons note concluded.
