September marks the return of many to the Gulf, ushering in a busy period filled with events, meetings, and preparations for the work-packed months leading up to the end of the year. This month has also brought a continuous flow of significant tax developments across the region.
In this edition of Gulf Tax Insights, we explore the latest tax updates within the Gulf Cooperation Council (GCC) member states, highlighting critical changes and insights that impact businesses and investors.
UAE Corporate Income Tax Guide
Over summer, the UAE Federal Tax Authority (FTA) issued a Corporate Tax Guide on determining taxable income. This month's edition of Gulf Tax Insights covers key aspects of this new guide, explaining how taxpayers should approach the determination and calculation of their taxable income. The guide includes a wide range of practical examples, which we have also discussed in our article.
Bahrain first GCC country to implement Top-Up Tax under Pillar Two framework
On 1 September, Bahrain published the Law on the Taxation of Multinational Enterprises. This new Law introduces a domestic minimum top-up tax (DMTT) of 15% for large Multinational Enterprises, aligning with the Global Minimum Tax (Pillar Two) initiative adopted by many jurisdictions globally. This edition describes the scope and application of the new Law.
UAE CIT Registration and Compliance
Many businesses in the UAE have already registered or are in the process of registering with the FTA for CIT. As the year progresses, some taxpayers will soon be submitting their first tax returns under the new regime. Notably, taxpayers incorporated on or after 1 June 2023, were initially required to file their first tax return by 30 September 2024, if their first financial year ended on 31 December 2023. However, the FTA has published a decision postponing these filing deadlines to 31 December 2024, giving businesses additional time to prepare and file their tax returns. This extension is a welcome move for many UAE businesses.
Double Tax Treaty Developments
Over the summer, we witnessed the continued strengthening of international business relations through the expansion and updating of Double Tax Treaty (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.
