GCC Tax Flash News – October 2025

GCC Tax Flash News – October 2025

by | Nov 6, 2025

 

Tax Statutes Description

United Arab Emirates (UAE)
Corporate Tax (CT)
  • The Federal Tax Authority (‘FTA’) amended the Tax Residency Certificate (‘TRC’) application process. Under the new process, application fee must now be paid upfront at the time of submission, replacing the earlier post-approval payment process
  • The FTA started requesting additional information from certain Taxpayers following the submission of their Corporate Tax returns, as part of its review and compliance procedures
  • News reports indicate that the FTA has witnessed a record volume of corporate-tax registrations and returns filings, with more than 640,000 businesses registered ahead of the September 2025 filing deadline
  • The Organisation for Economic Cooperation and Development (OECD) released the updated transfer pricing country profile for the UAE, reflecting recent developments in the country’s tax framework
Excise Tax
  • The UAE will implement a tiered volumetric model for excise tax on sugar-sweetened beverages effective from 01 January 2026 which is in line with the GCC’s adoption of this new model
  • Federal Decree-Law No. 7 of 2025 on Excise Tax published amending multiple articles related to tax calculation framework, registration, deductible, etc., which are effective from 01 October 2025
VAT The FTA released new Turnover declaration template for the VAT registration process. The “Taxable Expenses” column has been removed from the turnover declaration template and focuses solely on sales (turnover)
EmaraTax portal The FTA introduced several enhancements to the Emara Tax Portal, aimed at improving user experience and streamlining key compliance processes for the registrants. The key changes include amendment of authorized signatory/managers details, download the PDF file of Corporate Tax return submitted, introduction of my audit tab
E-Invoicing The MoF released the updated list of pre-approved Accredited Service Providers (‘ASP’) for E-invoicing listed with 9 service providers so far
Dubai Economy Dubai launched Free Zone Mainland Operating Permit to enable free zone companies to operate in Dubai’s mainland through a structured permit system. In its initial phase, the new permit covers non-regulated activities including technology, consultancy, design, professional services, and trading, with plans to extend to regulated sectors
UAE Anti-Money Laundering Law (AML) The UAE issued Federal Law No. 10 of 2025 on Combating Money Laundering, the Financing of Terrorism, and the Financing of Arms Proliferation (New AML Law) repealing the previous legislation which was issued in 2018.
The key implications of the new Law include unlimited exposure, no limitation periods, expanded coverages, etc.
Banking & Insurance Federal Decree-Law No. (6) of 2025 (the New Law for UAE Central Bank) issued (repealing the earlier Laws for Central Bank & Insurance) which is a comprehensive new legal framework governing the Central Bank and its regulation of financial institutions and activities, including insurance activities

Kingdom of Saudi Arabia (KSA)
Excise Tax The KSA to implement a tiered volumetric model for excise tax on sugar-sweetened beverages effective from 1 January 2026 in line with the GCC’s adoption of this new model
E-Invoicing The Zakat, Tax and Customs Authority (ZATCA) announced Phase 2 implementation date (Integration Phase) of E-invoicing on Wave 24 Taxpayers (who’s turnover exceeds SAR 375,000 in 2022 or 2023 or 2024) as 30 June 2026

Kingdom of Bahrain
VAT The National Bureau for Revenue (NBR) reported 51 violations during 260 market inspections in the third quarter of 2025
Corporate Tax (CT) A parliamentary proposal in Bahrain seeks to impose a 5% tax on the company’s net profits, expected to generate over BD 100 million for the State budget. Following the introduction of Domestic Minimum Top-up Tax (‘DMTT’) on MNEs from 2025, this moves signals a potential shift toward a broader corporate tax regime for domestic businesses
Commercial Company Law Federal Decree-Law No. 38 of 2025 issued amending the Commercial Companies Law (CCL). Many landmark changes made to strengthen corporate accountability, enhance regulatory oversight with transparency at the same time making it simplified to help the businesses by removing the outdated entities

Sultanate of Oman
Withholding Tax Oman announced a 5-year suspension of withholding tax on service contracts provided on board of ships registered under the Omani flag effective from 01 September 2025
Double Tax Avoidance Agreement (DTAA) Estonia approved the Oman-Estonia DTAA
Excise Tax The Oman Tax Authority (OTA) announces the postponement of the local mandatory date for implementing the “Digital Tax Stamp” on excise goods to 1st January, 2026 within phase three. This phase includes: soft drinks, energy drinks and Excise beverages (excluding sweetened drinks).

State of Kuwait
Double Tax Avoidance Agreement (DTAA) Kuwait ratified the DTAA with Qatar, and the DTAA with San Marino has entered into force

Qatar
Excise Tax The General Tax Authority (GTA) organised an introductory workshop on tiered volumetric model for excise tax on sugar-sweetened beverages in line with the GCC’s adoption of this new model. So far only UAE and the KSA have made the announcements to adopt this new model effective from 1 January 2026
Double Tax Avoidance Agreement (DTAA) DTAA with India has entered into force

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