Your Monthly Tax Update for the GCC region
As September draws to a close across the Gulf, many finance and tax teams are catching their breath after the UAE’s first (major) Corporate Tax compliance cycle, with FY 2024 returns due for most businesses by 30 September 2025, while the rulebook continues to evolve at pace. In this edition of Gulf Tax Insights, we unpack four recent developments that warrant attention and in some cases action from UAE tax professionals.
- The UAE Ministry of Finance has issued “third-generation” Free Zone Tax Regulations. Ministerial Decision No. (229) of 2025 revises the list of Qualifying and Excluded Activities, and Ministerial Decision No. (230) of 2025 designates Recognised Price Reporting Agencies. Our article explains what changed, why it matters, and where caution is warranted pending further FTA guidance.
- The Federal Tax Authority has released a Public Clarification on the Corporate Tax treatment of family wealth management structures. Building on the FTA’s Corporate Tax Guide on Family Foundations (see our earlier article), we outline when transparency or exemption may apply, how multi-tier structures are treated, and the compliance considerations that families offices should not overlook.
- We also examine the choice between the Foreign Tax Credit and the Foreign Permanent Establishment Exemption. With the first UAE Corporate Tax filings now behind many taxpayers, we set out the analytical framework for making (and evidencing) the election in future periods, highlighting trade-offs that can materially affect effective tax rates.
- Finally, we round up recent tax treaty developments across GCC Member States.
And in case you missed it, our Middle East tax team has contributed to Bloomberg Tax’s “First UAE Corporate Tax Return Filing Brings Challenges, Lessons,” reflecting on what we learned from this inaugural filing season.
Looking ahead, we will be hosting a breakout session at DLA Piper’s Middle East In-House Counsel Day on Tuesday, 28 October 2025: “Essential GCC tax developments for legal professionals.” During this session, our team will explore how fast-moving tax rules are landing on the desks of in-house teams and what practical steps legal counsel can take to navigate risk and enable the business.
Should members of your legal team be interested in attending, please feel free to share the registration link with them that can be accessed below.
We look forward to welcoming you there!
