October is already behind us and November proves to be an equally busy month for tax professionals in the Gulf. The past month has again 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
In October, the UAE Federal Tax Authority (FTA) issued a Corporate Tax Guide on the concept of Tax Resident and Tax Residency Certificates. This month's edition of Gulf Tax Insights covers key aspects of this new guide, explaining when companies and individuals will be considered tax resident in the UAE, and how they can obtain Tax Residency Certificates, both from a domestic and Double Tax Treaty perspective.
UAE phases out Economic Substance Regulations
Also in October, the UAE Cabinet issued Decision No. 98 of 2024 which effectively abolished the Economic Substance Regulations (ESR) for Financial Years from 2023. The ESR have applied from 2019, and this recent change means its effective application is now limited to the period from 2019 up to and including the Financial Year 2022. This month's article provides further context to this abolishment and what it means for businesses in scope of the regulations.
Significant changes to UAE VAT Executive Regulations
In early October, a UAE Cabinet Decision was published which entails significant changes to the UAE's VAT Executive Regulations (ER). Among others, the ER is being changed in relation to the scope of exempt financial services, documentation evidence for zero-rating for export of goods, zero-rating of services and means of transport, input VAT recovery and supplies made by government bodies. The changes are significant and enter into effect as per 15 November 2024. This month's article provides further background to the changes, and what businesses can expect in that regard.
Double Tax Treaty Developments
Over the past month, 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.
