Your Monthly Tax Update for the GCC region
As summer temperatures reach their peak across the Gulf region, AC units are humming to make sure that tax professionals keep their heads cool as they try to stay on top of a multitude of tax changes, and looming tax compliance deadlines.
In this July edition of Gulf Tax Insights, we take a closer look at three significant updates:
- The UAE Ministry of Finance has issued Ministerial Decision No. (173) of 2025, introducing a new depreciation deduction for investment properties held at fair value under the Corporate Income Tax regime. This measure aims to bridge the gap between accounting and tax treatments, particularly for taxpayers electing the realization basis.
- Meanwhile, Kuwait has advanced its implementation of Pillar Two of the OECD’s global tax framework by publishing the Executive Regulations for the Domestic Minimum Top-Up Tax. These regulations provide important guidance on how Kuwait plans to apply the Global Minimum Tax rules locally
- In addition, the UAE has announced a major change to its excise tax regime for sugar-sweetened beverages. Starting in 2026, a new tiered volumetric model will replace the current flat-rate system, linking tax rates to the actual sugar content of beverages.
These developments, along with other updates from across the Gulf Cooperation Council (GCC) member states, are covered in this month’s newsletter, keeping you informed in a rapidly evolving tax environment.
Please contact one of the editors or your usual DLA Piper advisers if you have any feedback or require further assistance
