GCC Tax update – Q2 July 2025
GCC Tax update – Q2 July 2025
BDO publishes a Gulf Cooperation Council (GCC) tax update on a quarterly basis, and we’re delighted to share the Q2 2025 edition with you. This update provides a summary of the region’s tax news and key changes from this year’s second quarter.
There is very interesting news from Oman this quarter, with the announcement that personal income tax will be introduced 1 January 2028. This will make Oman the first GCC state to implement personal income tax.
Once again, most of the tax news this quarter comes from the UAE with an avalanche of new guidance and legislation. There are also big changes on the horizon with e-invoicing planned to be implemented from June 2026.
In Qatar, the enabling law for global minimum tax has been published. This is an important milestone for the country, bring it into compliance with the OECD’s Pillar Two framework. There is also news from Qatar of an important tax relief on capital gains, which will provide a benefit to restructuring activities and support companies listing on Qatar’s financial markets.
Kuwait and Qatar have signed a double tax treaty, adding to the expanding network of bilateral tax agreements among GCC member states. The Kuwait Ministry of Finance has also published an update on certain reporting deadlines.
In Bahrain, there has been further progress with minimum top up tax, with the issue of a new fee structure for appeals and publication of an administrative guide. There is also new guidance on transfers of going concerns for VAT.
Real estate transfer tax dominates the tax news in Saudi Arabia, where important revisions to the legislation have been published.
We hope you find this summary of the tax news for the region useful. If you would like further information on any of the topics covered, please get in touch with your usual BDO adviser: please see the contact details for all our GCC offices on the back page of this publication. You will also find additional information on the relevant BDO firm’s web site.
For a full breakdown of these developments and country-specific updates, we invite you to download the complete Q2 2025 GCC Tax Update report.
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There is very interesting news from Oman this quarter, with the announcement that personal income tax will be introduced 1 January 2028. This will make Oman the first GCC state to implement personal income tax.
Once again, most of the tax news this quarter comes from the UAE with an avalanche of new guidance and legislation. There are also big changes on the horizon with e-invoicing planned to be implemented from June 2026.
In Qatar, the enabling law for global minimum tax has been published. This is an important milestone for the country, bring it into compliance with the OECD’s Pillar Two framework. There is also news from Qatar of an important tax relief on capital gains, which will provide a benefit to restructuring activities and support companies listing on Qatar’s financial markets.
Kuwait and Qatar have signed a double tax treaty, adding to the expanding network of bilateral tax agreements among GCC member states. The Kuwait Ministry of Finance has also published an update on certain reporting deadlines.
In Bahrain, there has been further progress with minimum top up tax, with the issue of a new fee structure for appeals and publication of an administrative guide. There is also new guidance on transfers of going concerns for VAT.
Real estate transfer tax dominates the tax news in Saudi Arabia, where important revisions to the legislation have been published.
We hope you find this summary of the tax news for the region useful. If you would like further information on any of the topics covered, please get in touch with your usual BDO adviser: please see the contact details for all our GCC offices on the back page of this publication. You will also find additional information on the relevant BDO firm’s web site.
For a full breakdown of these developments and country-specific updates, we invite you to download the complete Q2 2025 GCC Tax Update report.
DOWNLOAD