GCC Tax Flash News – March 2026

GCC Tax Flash News – March 2026

by | Apr 9, 2026

 

Legal Updates Description
United Arab Emirates (UAE)
Corporate Tax (‘CT’) The UAE Ministry of Finance (‘the MoF’) issued Ministerial Decision No. 24 of 2026 on the implementation of the Research & Development (‘R&D’) Tax Credit regime. Effective for tax periods commencing on or after 1 January 2026, this marks a significant initiative in strengthening the nation’s innovation ecosystem. The Decision sets out detailed provisions covering applicable R&D Tax Credit rates, eligibility criteria for qualifying activities, definitions of eligible expenditure, and robust anti-abuse measures
Excise Tax The UAE Federal Tax Authority (‘the FTA’) released updated Public Clarification on excise tax EXTP014 on Natural Shortage of Excise Goods, outlining the conditions, reporting, and declaration procedures for its treatment within Designated Zones
UAE Taxes
  • The FTA issued Decision No. 2 of 2026 (effective from 1 March 2026), formally setting out the policy framework for the issuance of clarifications and directives across all federal taxes, including Corporate Tax, Value Added Tax, Excise Tax, and Tax Procedures and Penalties
  • Cabinet Decision No 129 of 2025, issued in October 2025, introducing amendments to the administrative penalties for violation of tax laws, is due to become effective from 14 April 2026
Dubai Customs
  • The Dubai Customs Authority released Customs Notice No. (03/2026) which is effective from 8 March 2026, concerning temporary customs facilitation for cargo destined to Jebel Ali Port and Free Zones in the emirate of Dubai through the Ports of Khorfakkan and Fujairah in response to the current situation
  • The Dubai Customs Authority released Customs Notice No. (04/2026) which is effective from 12 March 2026, announcing the activation of the Green Corridor between the Emirate of Dubai and the Ports of the Sultanate of Oman for shipments transferred through land routes, aiming to streamline and expedite cross border cargo movement
E-Invoicing The MoF published an updated list of Pre Approved Accredited Service Providers (‘ASPs’) for e invoicing on its official website, increasing the number of providers to twenty one, ensuring that businesses have a broader range of ASPs for preparing upcoming e-invoicing compliance requirements
Money Laundering / Terrorist Financing Risk (‘ML’/TF’) Assessment The Ministry of Economy & Tourism (‘the MOET’) extended the submission timeline for the 2025 ML/TF Risk Assessment Data Collection for Designated Non Financial Businesses and Professions (‘DNFBPs’) as under:

  • Dealers in Precious Metals & Stones and Corporate Service Providers: 30 March 2026
  • Real Estate Brokers and Independent Accountants/ Auditors: 31 March 2026

Subsequently, the Ministry further extended the deadline for the aforementioned DNFBPs to 24 April 2026, as reflected on the MOET portal
Sultanate of Oman
E-invoicing
  • The Oman Tax Authority (‘the OTA’) announced the launch of the Fawtara platform, establishing the service provider registration functionality on the platform — a key implementation milestone in Oman’s e invoicing rollout
  • The OTA published version 1.0 of the Service Provider Registration User Manual (Arabic & English), providing guidance on applying and managing the Service Provider Accreditation process through the Fawtara Portal of the OTA
Qatar
Withholding Tax (WHT) The Qatari Council of Ministers issued Decision No. 4 of 2026 , establishing the “trusted entity” scheme, which enables approved entities to directly apply for WHT relief under applicable double taxation treaties. Effective from 16 March 2026, the Decision amends certain provisions under the Executive Regulations of the Income Tax Law No. (24) of 2018, with the objective of enhancing investment environment and streamlining treaty relief
Double Tax Avoidance Agreement (‘DTAA’) Qatar officially ratified its income and capital tax treaty with Kuwait through the publication of Amiri Decree No. (1) in its Official Gazette. The treaty will enter into force upon exchange of ratification instruments, marking a significant milestone in bilateral tax cooperation between the two nations
Kingdom of Bahrain
Value Added Tax (‘VAT’) Bahrain’s National Bureau for Revenue released the updated version of the VAT Real Estate Guide, Version 1.6, updating its guidance on the VAT treatment of real estate transactions in the Kingdom and introducing targeted clarifications rather than fundamental changes to the existing framework
State of Kuwait
DTAA Kuwait ratified the amending protocol to the Jordan–Kuwait Income Tax Treaty (2001), through the publication of the Decree-Law No. 12 of 2026. The protocol was originally signed on November 13, 2025

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