Your Monthly Tax Update for the GCC region
Summer has officially arrived in the Gulf, and with it comes a season of travel and family time for many tax professionals. While this period brings a welcome break for most, tax practitioners across the region continue to navigate a particularly busy time, often requiring them to manage their time off effectively.
In the UAE, the pressure is on as many taxpayers are gearing up to file their first Corporate Income Tax returns by 30 September 2025. To stay ahead, businesses are already determined to complete filings over the summer months (allowing them to potentially leverage the Federal Tax Authority’s (FTA) recently announced penalty waiver). At the same time, tax authorities across the Gulf continue to release new guidance on various aspects of taxation, keeping tax professionals on their toes.
To support you in staying up to date, we are pleased to bring you the June edition of Gulf Tax Insights, highlighting the latest tax developments across the Gulf Cooperation Council (GCC) member states.
Oman – Royal Decree on Personal Income Tax Law
The Omani authorities have issued a Royal Decree on Personal Income Tax Law (PIT Law) which will enter into force at the beginning of 2028. With this development, Oman has become the first Gulf country to formally implement personal income tax for high-income earners. With a relatively high exemption threshold, low tax rate and multiple allowances, Oman’s Personal Income Tax appears light and manageable. However, it remains essential to understand its potential impact on individuals and monitor how this development may influence tax landscape across the Gulf region.
Saudi Arabia – Extension tax amnesty scheme until 31 December 2025
In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) has extended the tax amnesty scheme until 31 December 2025. Our article describes the scope of application of the amnesty scheme and explains how taxpayers can benefit from the extended program.
UAE – FTA issues new decision clarifying compliance obligations of Unincorporated Partnerships, foreign partnerships and Family Foundations
To further clarify compliance obligations of Unincorporated Partnerships, the UAE’s FTA initially issued Decision No. (16) of 2023, which has now been repealed and replaced by FTA Decision No. (5) of 2025, issued on 19 May 2025. The new decision significantly expands and further clarifies the tax compliance obligations for unincorporated partnerships, foreign partnerships, and family foundations.
UAE – Ministry of Finance issued guidance Mutual Agreement Procedure
The UAE Ministry of Finance has released guidance on the Mutual Agreement Procedure (MAP) to help taxpayers understand when MAP is applicable, how the process works, and what documentation is needed to initiate the process. The MAP provides taxpayers with the possibility to seek relief from double taxation, under the applicable double tax treaties (DTT). The MAP guidance provides clarity to taxpayers on the scenarios where double taxation may occur such as transfer pricing adjustments, dual residency, or permanent establishment profit allocations. The MAP guidance further clarifies the timelines in which taxpayers must make a MAP claim.
UAE – Federal Tax Authority issues guidance regarding the taxation of Family Foundations
The UAE’s FTA has issued its first guidance on the tax treatment of Family Foundations under the UAE Corporate Tax Law. Our article outlines the key highlights of the FTA’s Guidelines, focusing on the tax implications for Family Foundations and their beneficiaries and the associated compliance and reporting obligations.
UAE – FTA grants a penalty waiver for late submission of corporate tax registration
Businesses that missed the corporate tax registration deadline have an opportunity to avoid or recover the AED10 thousand penalty. To qualify, taxpayers must submit their corporate tax return within seven months from the end of their first tax period. For most businesses, whose first tax period runs from 1 January 2024 to 31 December 2024, the corporate tax return should be submitted by 31 July 2025.
Double Tax Treaty Developments
Over the past month, we witnessed the continued strengthening of international business relations through the expansion and updating of DTT networks among GCC Member States. These developments aim to enhance the Gulf region’s attractiveness as a global business hub, facilitating smoother cross-border trade and investment activities.
Through these articles, we aim to provide you with insightful analysis and updates on the evolving tax landscape in the UAE and the wider GCC region. We hope this edition offers valuable knowledge to navigate the complexities of the current tax environment. As always, we look forward to your thoughts, comments, and feedback.
Also in this issue
Please contact one of the editors or your usual DLA Piper advisers if you have any feedback or require further assistance
