GCC Tax Flash News – May 2025

United Arab Emirates (UAE)

• Cabinet Decision No. 96 of 2025 issued outlining the conditions for exempting certain Real Estate Investment Trusts (REITs) from CT.
• REITs listed between 1– 31 May 2025 benefit from a temporary rule allowing just 10% of shares to be floated on a Recognised Stock Exchange – aimed at spurring investment.
• Cabinet Decision No. (55) of 2025 issued for exempting specified persons from CT. The scope of exemption includes foreign entities that are wholly owned by certain exempted entities —such as Government entities, Government-controlled entities, qualifying investment funds and public pension or social security funds, subject to meeting the relevant conditions
• CT Guide CTGFF1 issued on Taxation of Family Foundations

• The Federal Tax Authority (FTA) released a Public Clarification VAT P044 providing clarity on accounting for output tax, issuing tax invoices and input tax recovery in respect of services imported from outside the UAE

Kingdom of Saudi Arabia (KSA)

• Amendments to the White Land Tax Law has been approved, which raises the annual levy on undeveloped land from 2.5% to 10% aimed at boosting property development and increasing housing supply, as the Government works to address rising real estate prices

• The Zakat, Tax and Customs Authority (ZATCA) approved amendments to the GCC Common Customs Tariff (effective from June 1, 2025) including revised duty rates on specific goods

Kingdom of Bahrain

• Bahrain approved the DTA with Oman

• Ministerial Decision No. 30 of 2025 issued specifying fees for submitting review requests and tax appeals related to DMTT by an MNE National Bureau for Revenue (NBR) released DMTT Administrative Guide

Sultanate of Oman

• TOman announced implementation of e-Invoicing through the Pan-European Public Procurement Online (PEPPOL) 5 corner model. Implementation to be made in phased manner starting from Q3 of 2026 covering all types of taxpayers (i.e., B2B, B2G, B2C & G2B)

Qatar

• The General Tax Authority (GTA) announced the Cabinet’s endorsement of the draft resolution granting Capital Gains Tax exemption for Intra-Group restructuring

Organisation for Economic Co-operation and Development (OECD)

• The OECD released a consolidated commentary on the Global Anti-Base Erosion (GloBE) Model Rules in 2025, offering comprehensive guidance on the interpretation and practical implementation of the GloBE framework. This updated version incorporates all Administrative Guidance endorsed by the Inclusive Framework up to March 2025