OECD announced that 130 countries and jurisdictions joined its new two-pillar plan to reform international taxation, ensuring multinational enterprises pay tax wherever they operate.
Pillar One of the proposed framework would reallocate some taxing rights of multinationals enterprises from their home countries to the markets where they earn profits, regardless of physical presence.
Pillar Two will introduce a global minimum corporate rate tax at 15%.
United Arab Emirates, Saudi Arabia, Qatar and Bahrain are among the countries that joined the OECD initiative.
United Arab Emirates and Bahrain have no corporate income tax at present.
We expect the above initiative to impact corporate taxation in all four countries mentioned above, with the most possible introduction of corporate income tax in United Arab Emirates and Bahrain being the most important change.
Below you can find a link to OECD’s announcement.
