The Organisation for Economic Co-operation and Development (OECD) has approved the UAE’s new 15% tax on very large international companies. The update was announced on August 25, 2025, and it means that businesses in the UAE will not have to pay extra tax in other countries.
This rule started on January 1, 2025. It applies only to multinational companies that make more than €750 million ($793 million) in worldwide income. By giving the UAE “qualified status,” the OECD made sure that profits earned in the country will not be taxed again outside.
Key Points
- Tax Rate: 15% on big multinational firms.
- Start Date: January 1, 2025.
- Who Pays: Companies earning €750m+ globally.
- OECD Decision: UAE now on the approved list.
- Benefit: No double tax on UAE profits.
The UAE Ministry of Finance said this recognition will give businesses more confidence and reduce problems with tax rules.
Experts also welcomed the step. David Daly, partner at Gulf Tax Accounting Group, explained that the OECD’s approval shows the UAE is following fair tax rules and is now a “safe harbour” for multinational companies.
The OECD’s global minimum tax plan was created to stop big firms from avoiding taxes by moving profits to low-tax countries. The plan could raise about $220 billion more in global tax revenue each year.
The UAE had already introduced a 9% corporate tax in June 2023 on profits above Dh375,000. Smaller companies stay exempt. The 15% top-up tax only targets very large international groups.
What It Means
For businesses, this approval brings clear rules and fewer tax worries. For the UAE, it improves its image as a safe and fair place for global trade and investment.
