§Passage 1
Federal Decree-Law No. 60 of 2023
Amending Certain Provisions of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
We Mohamed bin Zayed Al Nahyan President of the United Arab Emirates,
- Having reviewed the Constitution,
- Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers, and its amendments,
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,
- Pursuant to what was presented by the Minister of Finance and approved by the Cabinet,
Have issued the following Decree-Law:
Article One
1. Two new definitions shall be added to the definitions under Article (1) of the Federal Decree-Law No.
(47) of 2022 referred to above:
Top-up Tax: The top-up tax imposed on Multinational Enterprises in accordance with this Decree-Law and the rules and controls to be determined by the Cabinet under Article (3) of this Decree-Law for the purposes of the pillar two rules issued by the Organization for Economic Cooperation and Development.
Multinational Enterprise: An entity and/or one or more of its member entities located in the State or in a foreign jurisdiction, as specified in a decision to be issued by the Cabinet at the suggestion of the Minister.
2. A new Clause numbered (3) shall be added to Article (3) of the Federal Decree-Law No. (47) of 2022 referred to above, its text is as follows:
Article (3 Clause 3)
Without prejudice to the provisions of Clauses (1) and (2) of this Article, the Cabinet at the suggestion of the Minister shall issue a decision regulating all cases, provisions, conditions, rules, controls, and procedures for imposing the Top-up Tax on Multinational Enterprises and the exemptions therefrom, so that the total percentage of the effective tax imposed on them is (15%) fifteen percent.
Article Two
The text of Article (65) of the Federal Decree-Law No. (47) of 2022 referred to above, shall be replaced by the following text:
Corporate Tax and Top-up Tax revenues and Administrative Penalties collected under this Decree-Law shall be subject to sharing between the Federal Government and the Local Governments based on the provisions of a federal law in force in this regard.