The UAE is a member of the OECD BEPS Inclusive Framework and is committed to addressing the challenges faced by tax jurisdictions internationally. As such, the introduction of a Corporate Tax regime helps to provide the UAE with a framework to adopt the Pillar Two rules.
Until such time as the Pillar Two rules are adopted by the UAE, multinationals will be subject to Corporate Tax under the regular UAE Corporate Tax regime.
Further information will be released in due course on the potential implementation of the Pillar Two rules in the UAE.
A multinational corporation is a corporation that operates in its home country, as well as in other countries through a foreign subsidiaries, branches or other entity forms of presence / registration. Merely earning foreign sourced income from outside its home country without a foreign presence or registration in a foreign country would not make a business a multinational corporation.
In the context of the global minimum effective tax rate as proposed under ‘Pillar Two’ of the OECD Base Erosion and Profit Shifting project,” large” refers to a multinational corporation that has consolidated global revenues in excess of the UAE Dirham equivalent of EUR 750 million.
The Ministry of Finance has announced that Pillar Two will not apply in the UAE in 2024. However, the Ministry will be releasing a public consultation in Quarter 1 of 2024 on the Pillar Two proposals. This consultation will seek input on the design and timing of the Pillar Two rules in the UAE from the relevant stakeholders.
The UAE is intending to allow the Pillar Two or the GLoBE Information Return (GIR) in relation to 2024 to be submitted via the UAE competent authorities. Further information on this will be provided by the Ministry of Finance in due course
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In an interconnected world where business knows no borders, navigating international taxation is essential for companies engaging in cross-border transactions and operations. With each jurisdiction imposing its own set of tax laws and regulations, staying compliant while optimizing tax strategies requires expert guidance and comprehensive understanding
At Finaxis Global, we understand the intricacies of international taxation and the challenges businesses face in managing their tax obligations across multiple jurisdictions. Our approach is centered around providing strategic guidance and personalized solutions to help our clients navigate the complexities of global tax compliance.
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Cross-Border Tax Planning
We work closely with our clients to develop tax-efficient structures and strategies that optimize their global operations while minimizing tax liabilities.
Transfer Pricing Compliance
Our team ensures that intercompany transactions are conducted at arm's length, helping clients comply with transfer pricing regulations and mitigate the risk of penalties.
Tax Treaty Analysis
We provide in-depth analysis and interpretation of tax treaties to help businesses take advantage of available benefits and avoid double taxation on international income.
Foreign Tax Credit Optimization
Our experts help clients maximize foreign tax credits to offset taxes paid in foreign jurisdictions, ensuring efficient tax planning and compliance.
Global Compliance Services
We offer comprehensive compliance services to help businesses meet their tax filing obligations in all relevant jurisdictions, ensuring they remain in good standing with tax authorities worldwide.
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Expertise
Our team of seasoned tax professionals brings years of experience and expertise in international taxation, providing our clients with reliable guidance and support.
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We understand that each business is unique, which is why we offer personalized solutions tailored to meet the specific needs and objectives of our clients.
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With a network of partners and affiliates around the world, we have the resources and capabilities to support businesses operating in diverse markets and jurisdictions.
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We are committed to delivering excellence in everything we do, providing our clients with trusted advice and unparalleled service to help them achieve their international tax goals.
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