[Based on the Public Consultation Document released by the Ministry of Finance, UAE on 28 April 2022.]
Provisions of OECD - Pillar Two shall be merged into the UAE Corporate Tax Laws. The applicability, rules, and procedures shall be embedded in the UAE Corporate Tax once the same is finalized at the OECD level.
Further, County-by-Country Reporting (CbCR) requirements as introduced in the UAE in 2019 shall not be impacted by the Corporate Tax regime.
Once the Pillar Two Principles are embedded in the UAE Corporate Tax regime, it may impact the taxability of MNEs having business in the UAE mainland as well as in Free Zones.
This may also trigger withholding taxes on certain UAE sourced income.
