Your Monthly Tax Update for the GCC region
The year 2026 has started as busy as the last year ended, and we cannot believe we have already reached February. The tax environment across the Gulf region keeps developing and existing regimes are being finetuned, meaning the tax landscape in the Gulf is getting more mature every year. We look forward to another exciting year of helping our clients understand and navigate this ever-changing tax landscape. This month's Gulf Tax Insights provides you with insights on the following topics.
- Bahrain's Cabinet of Ministers has announced a proposal to introduce a corporate income tax regime which should take effect as from January 2027. With an announced tax rate of 10% and relatively high thresholds for application, Bahrain's suggested corporate income tax regime appears to be quite business friendly.
- The UAE Federal Tax Authority has issued a VAT Guide on the Profit Margin Scheme, and its practical application. The Profit Margin Scheme is an optional scheme allowing VAT‑registered resellers of certain goods to calculate VAT only on the profit margin, rather than on the full selling price.
- The UAE Federal Tax Authority also issued its long-awaited Corporate Tax Guide on Advance Pricing Agreements. The Guide provides clarity and procedural guidance for taxpayers seeking certainty on transfer pricing matters under the Corporate Tax regime.
- Finally, we round up recent tax treaty developments across GCC Member States.
We hope this month's edition of Gulf Tax Insights is helpful, and we look forward to seeing you soon.
