GCC Tax Flash News – November 2025

GCC Tax Flash News – November 2025

by | Dec 11, 2025

 

Tax Statutes Description

United Arab Emirates (UAE)
Corporate Tax (CT) The UAE Federal Tax Authority (FTA) updated its Corporate Tax Payments User Manual to provide enhanced guidance for businesses to navigate tax payments process through the EmaraTax portal
UAE Taxes
  • The Cabinet Decision No. 129 of 2025 issued introducing amendments on certain provisions of administrative penalties under the VAT/ Excise Tax laws, effective from 14 April 2026
  • The Ministry of Finance (MoF) issued Federal Decree-Law No. 17 of 2025, amending specific provisions of Federal Decree-Law No. 28 of 2022 (the ‘Tax Procedures Law’), effective from January 1, 2026
Value Added Tax (VAT) The UAE MoF issued Federal Decree-Law No. 16 of 2025, introducing amendments to certain provisions of Federal Decree-Law No. 8 of 2017 (the ‘UAE VAT Law’), effective from January 1, 2026
Dubai Customs Dubai Customs released the Customs Notice No. (16/2025) outlining the extension of the Customs duty rates increase on reinforcing steel coil from 5% to 10% for an additional 3 years until 12 Oct 2028 (HS code series 7213 & 7214)
Excise Tax The FTA released the Excise Tax FAQs on the new tiered volumetric model for sweetened drinks (included carbonated drinks)
Common Reporting Standard (CRS) The amendments to the implementation of Common Reporting Standard scheduled to take effect by 2027. The MoF has also signed the Addendum to the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information, further reinforcing the UAE’s commitment to international tax transparency and alignment with OECD standards
Dubai Economy Dubai has cut the time taken to open a business bank account by 90 per cent from an average of 65 days to just five, with the major contribution of the Dubai Unified Licence (DUL), a flagship digital initiative that is transforming the way businesses start and operate in the city

Kingdom of Saudi Arabia (KSA)
Excise Tax
  • The Zakat, Tax and Customs Authority (ZATCA) published the official guide explaining the new tiered Volumatic excise model for sweetened drinks, replacing the current flat 50% ad-valorem rate. New rates will be as follows:
    1. Tier 1 (Artificially Sweetened only) – SAR 0 per litre
    2. Tier 2 (Low Sugar <5g) – SAR 0 per litre
    3. Tier 3 (Medium Sugar 5g to 7.99g) – SAR 0.79 per litre
    4. Tier 4 (High Sugar 8g or more) – SAR 1.09 per litre

    Excise Tax compliance (i.e., registration and return filing) is still mandatory for Tier 1 & Tier 2 model

  • ZATCA announced a key update on customs (Decision no. 1447-99-303) – The proof of origin rules is now simplified, enhancing efficiency in customs compliance for importers
Customs
  • The Ministry of Finance revised the customs duty rates (mostly decrease in the rates) on several items in line with Saudi Vision 2030
  • ZATCA announced a key update on customs (Decision no. 1447-99-303) – The proof of origin rules is now simplified, enhancing efficiency in customs compliance for importers

Kingdom of Bahrain
VAT
  • The National Bureau of Revenue (NBR) announced a second interactive session to support Small and Medium Enterprises (SMEs) in enhancing their understanding of the practical application of the VAT legislation and ensuring they are well-equipped to meet their compliance obligations effectively
  • NBR released updated VAT Real Estate Guide

Sultanate of Oman
Corporate Tax
  • The Oman Tax Authority (OTA) issued a resolution (313/2025) amending the Executive Bylaws of the Law on Companies and Institutions, introducing a new provision to Article 33 under the Income Tax Law
  • The OTA introduced a three- Tax incentives programme for Capital Market aligns with Oman Vision 2040.
    1. First Path – Establishing or transforming into public joint stock companies
    2. Second Path – Promising company’s market
    3. Third Path – Encouraging the conversion of limited liability companies (LLC) into closed joint stock companies
E-Invoicing The OTA announced Service Provider Accreditation Criteria under the (Fawtara) E-invoicing Project, supporting digital transformation and enhancing compliance within the tax ecosystem

Qatar
Withholding Tax (WHT)
  • The General Tax Authority (GTA) introduced new requirements for the Withholding Tax (WHT) declaration process through the Dhareeba tax portal. Each WHT declaration must now be linked to a previously submitted contract (through Contract Reporting module), with two new template fields (Dhareeba acknowledgment reference and internal contract reference)
  • The GTA also emphasised the necessity of notifying the authority of any contract concluded with non-residents within 30 days from the contract date or the start of execution, whichever is earlier. The entities are also required to include the reference number of the contract, purchase order, or invoice in the WHT statement for each payment subject to WHT
Double Tax Avoidance Agreement (DTAA) Qatar and India signed a revised DTAA, effective 2026, introducing updated provisions aligned with OECD BEPS standards

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