“On 20 December 2021, the OECD issued final rules to implement a Global Minimum Tax, which will impact companies operating in the UAE and GCC countries from 2023.

The Global Minimum Tax (or Pillar 2) forms part of the OECD’s Base Erosion and Profit Shifting (BEPS 2.0) project which propose a two-pillar approach to international tax reforms. This new directive follows an earlier announcement which stated that 137 countries (including five of six GCC countries, excluding Kuwait) supported the concept of a global minimum tax rate of 15% for large multinationals, and the reallocation of taxing rights for the world’s largest groups.