Minimum 15% corporate tax - Did UAE sign?

[Verbatim]

So 130 out of 139 OECD members signed the agreement for minimum 15% corporate tax for multinationals. Guess the small fish are next.

Ireland, Estonia, Hungary, Barbados didn't sign. Not sure which are the other ones.

I couldn't find any info on UAE and if it signed or not. Anyone has any news?

 

[JohnLocke]

Sooner or later they will all be forced to sign. I don't believe they will escape.

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[troubled soul]

In uae , dubai government thinking about imposing tax before this happen, as dubai is not island country . It can not last long on oil revenue they want sustainable source of income.
https://www.euronews.com/amp/2019/1...-criticizes-trump-and-welcomes-uae-income-tax
This news is 2 year old.

Regarding treaty even Saudi can not stand against them, forget about uae

 

[Fred]

There is a misunderstanding.

The global min. taxation is designed for Google kind of companies so that it can't happen in the future that Google doesn't pay any taxes in the EU because there base is in US which has more then 15% in tax so they should pay with the Ireland entity min. 15% as well.

Oh wait Ireland didn't signed 😉

UAE itself is tax free on all levels beside of VAT on local business so this law ignores UAE fully or even doesn't target UAE at all in it's intention. This law targets Google, Amazon etc. and because of this for sure Ireland didn't signed.

Will be interesting to watch the fight of the OECD vs. Ireland lobby for big US companies - grab your popcorn.

Toggle signature

 

[Golden Fleece]

Fred said:
The global min. taxation is designed for Google kind of companies so that it can't happen in the future that Google doesn't pay any taxes in the EU because there base is in US which has more then 15% in tax so they should pay with the Ireland entity min. 15% as well.
Click to expand...

I recently read an analysis that stated that the law will have zero effect on mega-corporations such as Google, because such companies always have the resources to avoid taxation, and that the global minimum corporate taxation will instead mostly impact small and medium businesses.

When has a socialist program ever accomplished its intended effect?

 

[troubled soul]

"The devil is in the detail"

Let's wait for details of treaty

 

[troubled soul]

Verbatim said:
So 130 out of 139 OECD members signed the agreement for minimum 15% corporate tax for multinationals. Guess the small fish are next.

Ireland, Estonia, Hungary, Barbados didn't sign. Not sure which are the other ones.

I couldn't find any info on UAE and if it signed or not. Anyone has any news?
Click to expand...

YES, UAE sign thte treaty.

I attach the official Document

Attachments​

• 
  oecd-g20-inclusive-framework-members-joining-statement-on-two-pillar-solution-to-address-tax-c...pdf
  177.3 KB · Views: 132

 

[troubled soul]

If I able to understand rightly,

Pillar One
Scope
In-scope companies are the multinational enterprises (MNEs) with global turnover above 20 billion euros
and profitability above 10% (i.e. profit before tax/revenue) with the turnover threshold to be reduced to
10 billion euros, contingent on successful implementation including of tax certainty on Amount A, with the
relevant review beginning 7 years after the agreement comes into force, and the review being completed
in no more than one year.
Extractives and Regulated Financial Services are excluded

Pillar Two
Scope
The GloBE rules will apply to MNEs that meet the 750 million euros threshold as determined under
BEPS Action 13 (country by country reporting). Countries are free to apply the IIR to MNEs headquartered
in their country even if they do not meet the threshold.
Government entities, international organisations, non-profit organisations, pension funds or investment
funds that are Ultimate Parent Entities (UPE) of an MNE Group or any holding vehicles used by such
entities, organisations or funds are not subject to the GloBE rules.
Click to expand...

750 million euros are threshold , So chill no need to worry . (If i understand right)


Well, I do my part of the job (Google Seach smi(&%smi(&%smi(&%smi(&%)
Can any expert go though the Official statement (attach below)?
Simplify for me and other ignorant people.

I started new thread for this here Can any one simply "Two-Pillar Solution to Address the Tax Challenges Arising From the Digitalisation of the Economy" ?



Thanks

Attachments​

• 
  statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisati...pdf
  174.7 KB · Views: 121

Last edited: Jul 5, 2021

 

[Fred]

azb1 said:
YES, UAE sign thte treaty.

I attach the official Document
Click to expand...

Yes because it has 0 impact as there are no taxes in the UAE.

That's important to highlight otherwise I have to repeat myself all the time in personal consultation.

This law helps the high tax countries to catch the high profile guys that are residents there and reduce there taxes in a for now legitimate way by having a IoM or Malta Trading company with effective place of management there due to enough substance, profits and loopholes they can reduce the effectiv tax in there high tax home country.

As for now as long as your business makes enough money and you can effort the substance you get away with it - this will change with this law.

Toggle signature