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 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
- Two new definitions shall be added to the definitions under Article (1) of the Federal Decree-Law
(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.
- 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.
Article Three
As an exception to the provisions of Article Four of this Decree-Law, the provisions of the Top-up Tax specified in Clause (2) of Article One of this Decree-Law shall come into effect as of the date specified in a decision issued by the Cabinet at the suggestion of the Minister, and such decision shall be published in the Official Gazette.
Article Four
This Decree-Law shall be published in the Official Gazette, and shall come into effect on the day following its publication.
Mohamed bin Zayed Al Nahyan
President of the United Arab Emirates
Issued by us in the presidential palace – Abu Dhabi:
Date: 17/ Rabi’ al-Awwal /1445H
Corresponding: 02/October/2023
