The UAE’s Finance Ministry has announced it has launched a consultation on the Global Minimum Tax or Global Anti-Base Erosion Model (Pillar Two) or GloBE Rules approved by the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting or BEPS. It ends on 10 April 2024.

The consultation has been launched to determine how the Ministry should respond to the implementation of the GloBE Rules worldwide.

The Ministry is looking for feedback on how the GloBE Rules will be able to be implemented in the country. This includes how it will interact with the UAE’s corporate income tax system. It also includes ways to minimise compliance costs and the policy options for potential implementation of the GloBE Rules.

The consultation paper covers Pillar Two implementation in the UAE. This includes GloBE implementation, the design of a potential UAE domestic minimum top-up tax and administration matters as well as substance-based incentives.

In addition to the consultation paper, a guidance paper has been issued by the Ministry. This provides details on the specific aspects of the GloBE Model Rules.

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