The summer has been long and warm in the Gulf region. Whilst many tax professionals will have travelled to cooler climates with and to their families, the pace of change of the region’s tax environment continues to be red-hot.
In this summer edition of our Gulf Tax Insights, we delve into some of the latest tax updates within the Gulf Cooperation Council (GCC) member states, highlighting critical updates and insights that impact businesses and investors across the region.
In May 2024, the UAE Federal Tax Authority (FTA) issued its Investment Funds and Investment Managers Guide in which the FTA introduces new methodologies to achieve tax neutrality and clarifies various conditions for claiming the relevant Corporate Income Tax (CIT) exemptions. This summer edition’s article describes the key aspects of the Guide and will be instrumental for UAE Investment Funds and Investment Managers.
Before the summer season kicked off, the UAE FTA released a Guide on the Free Zone Tax Regime. The Guide included helpful information and clarifications on specific areas of the Free Zone Tax Regime. Our summer newsletter features an article which highlights the most important topics of the Guide. DLA Piper’s tax team have also hosted a Webinar on 26 June 2024, titled UAE Corporate Income Tax - Key aspects of the Free Zone Tax Regime. Feel free to reach out to the team if you wish to receive a recording of the Webinar.
In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) has extended the tax amnesty scheme until 31 December 2024. Our article on this important extension describes the scope of application of the amnesty scheme and explains how taxpayers can benefit from the extended program.
In 2022, the ZATCA released a Public Consultation Document, proposing several amendments to the Saudi Arabian Transfer Pricing By-laws. One of the amendments is the adoption of the possibility for taxpayers to apply for Advance Pricing Agreements for years starting on or after 1 January 2024. On 19 May 2024, the ZATCA has officially launched its Unilateral Advance Pricing Agreements process. Our summer newsletter features an article which discusses this new process in Saudi Arabia, and the benefits it may have for taxpayers in the Kingdom.
Over the summer months, we saw 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.
Finally, after the tax team expanded in April with tax manager Rocio Falagan, we are very excited to welcome Raneem Alrakhaimi to the team. Raneem has joined the team in August and she has worked in Saudi Arabia for the past five years, specializing in International Tax, Transfer Pricing and Tax Disputes. Raneem joined the tax team as a manager, and she will be based our Riyadh office.
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 summer edition offers valuable knowledge to navigate the complexities of the current tax environment. As always, we look forward to your thoughts, comments, and feedback.
