GCC Tax Flash News – July 2025

United Arab Emirates (UAE)

• The Federal Tax Authority (FTA) issued a Public Clarification (CTP006) explaining the criterion for availing the waiver or refund of administrative penalty for late submission of Corporate Tax registration
• The Ministry of Finance (MoF) issued the Ministerial Decision No. 173 of 2025 on “Depreciation Adjustments for Investment Properties held at Fair Value” for the purposes of UAE Corporate Tax

• Russia ratified a new Income and Capital Tax Treaty in February 2025 with the UAE replacing the previous Treaty signed in 2011

• The FTA issued a Public Clarification (EXTP011) on natural shortages of Excise goods within Designated Zones aligning with the FTA Decision No. 6 of 2025 which was issued in the month of June 2025
• The MoF and the FTA announced amendment to excise tax on sugar sweetened beverages through introduction of Tiered Volumetric Model whereby from 2026, the tax on ‘sugar-sweetened beverages’ will be linked to the sugar content in the product instead of the current flat rate of 50%

• The FTA launched a new appointment booking system (Live Tax Connect Channel https://tax.gov.ae/en/about.fta /live.tax. connect.channel.aspx) to ease out the process of connecting with the FTA representative for any matter
• The FTA released an updated guide on “Private Clarification” procedure providing more clarity on the eligibility criteria, grounds of rejections, the clarification process etc.

• Dubai Customs issued notice no. 10/2025 regarding flexible implementation of the Integrated Customs Tariff at a 12-digit level, while continuing to operate under current systems (8-digit level) during the transition period

• “One Freezone Passport” programme launched which allows companies to operate across all free zones in the emirate under a single licence.

Kingdom of Saudi Arabia (KSA)

• Implementation of Phase 2 (Integration Phase) of E-invoicing on Wave 23 Taxpayers (who’s turnover exceeds SAR 750,000 in 2022 or 2023 or 2024) from 31 March 2026

• The Ministry of Municipalities and Housing published the implementing regulations to the new White Land Tax Law under Royal Decree No. M/24

• The Council of Ministers approved a landmark allowing ownership of real estates to non-Saudis. The new “Law of Real Estate Ownership by Non-Saudis” will take effect 180 days after publication (expected from January 2026)

Kingdom of Bahrain

• The National Bureau for Revenue issued a manual on DMTT Advance Payment

State of Qatar

• The General Tax Authority (GTA) has reminded that the following types of entities must submit their CT return on an accrual basis within the specified timeframe (due date 31 August 2025) to avoid any penalties or legal actions: on an accrual basis
  1. Companies with foreign partners
  2. Companies engaged in professional activities
  3. Tax-exempt companies (owned by Qataris or GCC nationals with capital of QAR 1 mill or more and annual revenue of QAR 5 mill or more)
• The GTA has also urged all the entities subject to Corporate Tax to submit their CT returns within the extended deadline of 31 August 2025 to avoid any penalties or legal actions.

State of Kuwait

• Kuwait issued Implementing regulations to DMTT Law through MR No. 55 of 2025, the DMTT Law is effective from the financial years beginning on or after 1 January 2025. A MNE (not in scope of 01 January 2025 implementation) must register within 120 days from becoming subject to DMTT and a MNE (in scope on 1 January 2025 implementation) must register by 30 September 2025.

• Tax Treaty with the Kingdom of Saudi Arabia (Decree-Law no. 80 of 2025) ratified