We’re delighted to share with you the Q3 edition of BDO’s Gulf Cooperation Council (GCC) tax update. Please access the full report PDF via the download link on the right.
There have been some important changes across the region during this period: one of the most significant updates comes from Bahrain, with the announcement that a domestic minimum top-up tax (DMTT) will be introduced with effect from 1 January 2025. Bahrain is the first GCC country to introduce DMTT and this is a pivotal step for country - and the region as a whole - in the implementation of the OECD project to combat international tax abuse.
Kuwait is another of the GCC states that is making progress with the implementation of OECD Pillar 2 and it seems likely the implementation of legislation could be on its way. Meanwhile, the country has seen much tax treaty activity, with several treaties approved, ratified or updated.
In Oman, discussions have been initiated to consider imposing an individual tax on high income earners, both Omani citizens and expatriate residents, but we await further details. There is positive news for LLCs converting to public joint stock companies in the country, further to the introduction of some interesting tax incentives.
Updates in the Kingdom of Saudi Arabia (KSA) have included a further extension to the so-called tax amnesty and some proposed changes to the VAT legislation, while for Qatar, we bring news of an update on the information required for CRS reporting.
One of the busiest places for tax change over the past year has been the UAE. Since the introduction of the new corporate tax, there remains significant activity as taxpayers start to get to grips with it. UAE businesses have been supported by the guidance issued by the Federal Tax Authority (FTA), with several new guidance notes having been published this quarter.
We trust that this summary of the tax news for the region is useful for both our regular and new readers. Contact details for each of the BDO firms’ local tax representatives are provided on the back cover of our report. Our tax experts will be pleased to assist if you need further information on any tax-related matter or have other queries.
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