DMTT UAE Calculator: Domestic Minimum Top-up Tax at 15%
Estimates the UAE Domestic Minimum Top-up Tax for a multinational group: checks the EUR 750 million revenue test, works out the UAE effective tax rate from the income and covered taxes you enter, and applies the gap to 15% to the profit left after the substance-based income exclusion. The DMTT applies to financial years starting on or after 1 January 2025.
The DMTT in the UAE is the Domestic Minimum Top-up Tax, a tax that raises the effective tax rate of large multinational groups on their UAE profits to 15%. It applies to multinational enterprises with consolidated global revenue of EUR 750 million or more in at least two of the four preceding financial years, for financial years starting on or after 1 January 2025.
How the DMTT UAE Top-up Is Calculated
The UAE rules closely follow the OECD Global Anti-Base Erosion (GloBE) Model Rules. The OECD summarises the calculation in three steps: work out the effective tax rate for the jurisdiction (covered taxes divided by GloBE income); take the difference between the 15% minimum rate and that effective tax rate; and apply that top-up percentage to the GloBE income after deducting a substance-based income exclusion, which is a percentage mark-up on tangible assets and payroll costs.
| Step | Formula | Example |
|---|---|---|
| Effective tax rate | Covered taxes / net GloBE income | AED 4M / AED 50M = 8% |
| Top-up tax percentage | 15% - effective tax rate | 15% - 8% = 7% |
| Excess profit | Net GloBE income - substance-based income exclusion | AED 50M - AED 10M = AED 40M |
| Top-up tax | Top-up percentage x excess profit | 7% x AED 40M = AED 2.8M |
Worked Example
A group with revenue above EUR 750 million in all four preceding years has UAE net GloBE income of AED 50 million and adjusted covered taxes of AED 4 million. Its UAE effective tax rate is 8%, so the top-up percentage is 7%. With no substance-based exclusion the top-up is 7% of AED 50 million, AED 3.5 million. With an exclusion of AED 10 million, excess profit is AED 40 million and the top-up falls to AED 2.8 million. A group that met the revenue test in only one of the four years owes no DMTT.
Who Is in Scope and From When
The DMTT was introduced under Federal Decree-Law No. 60 of 2023, and Cabinet Decision No. 142 of 31 December 2024 set out the detailed rules. It is effective for financial years starting on or after 1 January 2025. It sits on top of the ordinary UAE Corporate Tax, which charges 9% on taxable income above AED 375,000 and 0% on the qualifying income of a Qualifying Free Zone Person. Because those rates are below 15%, an in-scope group will often have a UAE effective tax rate under the minimum.
What This Calculator Leaves Out
Net GloBE income and adjusted covered taxes are not the figures in the statutory accounts or the Corporate Tax return: both are reached through a list of adjustments in the rules. The substance-based income exclusion is entered here as an amount because its percentages for payroll and tangible assets change each year during the transition period. Safe harbours and the de minimis exclusion can reduce the top-up to zero and are not modelled. Treat the result as a first estimate before a full Pillar Two computation.
Source and Disclaimer
The page title carries 2027 in its address; the rules described are those in force for financial years from 1 January 2025, as reviewed in September 2026. Not tax advice.
Sources: PwC Worldwide Tax Summaries — United Arab Emirates, taxes on corporate income (last reviewed 9 September 2026); OECD — Pillar Two Model Rules in a Nutshell. Last updated: October 2026.