GCC Tax Flash News – February 2025

United Arab Emirates (UAE)

• The CT return filing for the period ending 31 December 2024 (filing deadline 30 September 2025) is now activated on the EmaraTax portal

• The Federal Tax Authority (FTA) have urged tax registrants to benefit from the grace period to update their tax records (i.e., tax registration information on the EmaraTax portal) before 31 March 2025 without incurring administrative penalties
• FTA announced 15 February as effective date of the Cabinet Decision No. (127) of 2024 dated 16 December 2024 related to expanding the scope of reverse charge mechanism applicability on precious metals and stones
• The FTA has released a Decision specifying cases wherein an extension will be granted for accepting the submission of tax assessment review or reconsideration request
• The FTA has released communication to entities under a Tax group structure to review the grouping requirements and de-group/de-register any entity in the VAT group which do not meet the grouping requirement

• The Ministry of Finance (MoF) released a public consultation document on E-invoicing programme and E-invoicing data dictionary. This document gives an overview of the proposed E-invoicing model in the UAE which will be implemented in a phased manner starting from July 2026. The deadline for submitting the feedback on this consultation document was 27 February 2025

• Insurance customers in the UAE will have to make direct payments of their insurance premiums to the insurers instead of routing it through the brokers (Circular No. 1/2024, Date 1/4/2024, effective 15th Feb 2025)
• The Abu Dhabi Department of Economic Development (ADDED) announced the measures allowing the entities registered in other emirates and their freezones to establish branches in Abu Dhabi without requiring physical office in the first year. This proposal extends to 1,200 activities across various sectors
• The UAE introduced law to ensure fair market, check market monopoly. As per this law, a company with more than 40 per cent share of the total sales in its relevant market must notify the regulators

• Russia and the UAE signed a DTA

Kingdom of Saudi Arabia (KSA)

• The Zakat, Tax and Customs Authority (ZATCA) announced deadline of 31 October 2025 to complete the implementation of integration of e-invoicing for wave 20 taxpayers (i.e., businesses with a turnover of more than SAR 1.5 million during 2022 or 2023)

• ZATCA issued a detailed guide on application of double taxation treaties explaining different methods of applying the treaty benefits including exemption methods and credit methods. It also explained many important matters related to tax treaties for the benefit of taxpayers
• The Ministry of Finance authorized by the Council of Minister to sign DTA with Serbia

• ZATCA published guidelines on advance pricing agreements (APAs). This guide gives insights on the eligibility criteria, application process and operational framework when entering into APAs with the ZATCA. However, only unilateral APAs are being introduced currently

• Ministerial Resolution (MR) 947 has been issued by ZATCA, extending the timeline for Zakat payers to apply the new Zakat regulations for fiscal periods beginning before January 1, 2024 to April 30, 2025. The request in this respect was required to be submitted within 60 days from the publication of MR, i.e., by 21 May 2024

• ZATCA issued guidelines relating to VAT refund on expenses incurred by donors on public benefit projects

• The draft regulation for RETT released for public consultation. The deadline for submissions feedback on this public consultation document from the taxpayers is 15 March 2025

Kingdom of Bahrain

• The National Bureau for Revenue (NBR) conducted 161 inspection visits within local markets in January and reported 35 violations

• The Shura Council once again rejected the proposed legislation to impose a 2% tax on the remittance by expatriate asserting that this proposal would have negative impact on the economy and may encourage money laundering

Sultanate of Oman

• The Oman Tax Authority (OTA) launched the National Platform encouraging Taxpayers to submit their suggestions, compliances, reports and inquires related to Tax services using this platform

• OTA issued a warning to the Taxpayers to choose reliable accounting and auditing firms to make sure the smooth conduct of tax transactions in a safe and secure manner

• India and Oman signed a protocol to amend the DTA
• Egypt ratified the DTA with Oman which was signed in May 2023

State of Qatar

• The General Tax Authority (GTA) launcheed the “100% Financial Penalty Exemption Initiative” for six months starting from 01 March 2025 to support the businesses by improving the Tax compliances

• Qatar and India signed a new DTA (revised)