GCC Tax And Regulatory Communique March 2025

GCC Tax and Regulatory Communique March-2025
GCC Tax and Regulatory Communique March-2025
Download GCC Tax and Regulatory Communique March 2025

This is the march 2025 edition of our GCC Communique to keep you informed about the latest updates on the regulatory developments across the GCC region, including the UAE and beyond. This is the march 2025 edition of our GCC Communique to keep you informed about the latest updates on the regulatory developments across the GCC region, including the UAE and beyond.

Updates in the GCC Tax and Regulatory Communique March 2025 include:

1. FAQs on Pillar 2 

The UAE Federal Tax Authority (FTA) provided more clarity on the recently introduced DMTT by publishing new FAQs. These provide straight forward answers to various important aspects of the legislation and their implications. Read the full newsletter to know more about the key provisions and exemptions as under this rule. 

2. Federal Tax Authority issues a Public Clarification on the amended VAT Executive Regulations 

The FTA has made amendments to the VAT Executive Regulations by issuing a public clarification. These amendments are designed to streamline VAT Compliance in UAE and will be considered effective from November 2024. 

3. Saudi Arabia Announces 22nd Wave of Phase 2 e-Invoicing Integration 

Saudi Arabia has announced the 22nd wave of its e-invoicing integration’s 2nd Phase.  This will impact the taxpayers with significant turnover. These updates will be effective starting October 2025 for affected businesses. 

4. Introduction of Pillar Two Global Minimum Tax Rules 

Law No. 22 of 2024 was published in the Official Gazette on March 27th, 2025. This law introduced significant changes to Global Minimum Taxation, including an Income Inclusion Rule (IIR) and a Domestic Minimum Top-Up Tax (DMTT) in Qatar. These provisions will be considered effective from January 2025, aligning with the OECD Model Rules. 

5. Introduction of Corporate Tax: 8-Point Action Plan Approved for 2025-2026 Fiscal Budget 

Bahrain to introduce Corporate Income Tax (CIT) and other fiscal changes. Bahrain has finalized an 8-point action plan for its 2025-2026 fiscal budget aimed at achieving a budget surplus and enhancing Bahrain’s financial stability.   

6. National Bureau for Revenue Updates: Frequently Asked Questions on Domestic Minimum Top-Up Tax 

Bahrain’s NBR provided further guidance on the scope and implementation of Domestic Minimum Top-Up Tax (DMTT) starting January 2025. They have issued updated FAQs about DMTT with accurate and precise answers. 

7. International Tax Reforms and Developments 

Explore global tax reforms, including updates from the UK, Japan, Cyprus, and Australia on Pillar Two GloBE rules, and other significant tax changes. 

Access the full newsletter and explore the detailed updates, including the key dates, compliance requirements, and sector-specific implications. 

 

GCC Tax And Regulatory Communique February 2025

GCC Tax and Regulatory Communique February 2025
GCC Tax and Regulatory Communique February 2025
Download GCC Tax and Regulatory Communique February

GCC Tax & Regulatory Communique February 2025 presents the regulatory updates across UAE, Saudi Arabia, and international tax developments, throughout the course of the month of February. 

Regulatory and Corporate Tax Updates in UAE 

The Regulatory and Corporate Tax updates in UAE include 

  • The UAE Ministry of Finance issued a public consultation document on the UAE E-Invoicing framework on the 6th of February 2025.
  • On the same day, the UAE MoF released the legislation introducing a Domestic Minimum Top-up Tax (DMTT) for Multinational Enterprises (MNEs), through the publication of Cabinet Decision No. 142 of 2024.
  • Other regulatory updates were also introduced with the Cabinet Decision No. 142 on Global Minimum Tax.  
  • The FTA updated the Corporate Tax Return format.   
  • Sharjah introduced 20% Corporate Tax on Natural Resources Companies 
  • UAE Federal Tax Authority (FTA) issued Decision No. 1 of 2025 to clarify the circumstances under which it may grant an extension for submitting a tax assessment review or reconsideration request. 

Regulatory and Corporate Tax updates in KSA 

The regulatory updates in Saudi Arabia include:

  • Deadline Extension for Election Submission under Ministerial Resolution No. 947 ,/font>
  • The Zakat, Tax, and Customs Authority (ZATCA) of the Kingdom of Saudi Arabia (KSA) has introduced Advance Pricing Agreements (APAs) to enhance tax certainty and simplify compliance for businesses engaged in controlled transactions. 

International Tax Updates 

International Tax Updates Include: 

  • France Publishes the New Declaration Form for CbCR and Pillar Two Notification 
  • On 17th February 2025, Russia and the United Arab Emirates have signed an agreement to avoid double taxation of income and capital and prevent tax evasion. 

Summary of the Newsletter “GCC Tax & Regulatory Communique February 2025” 

The key to consistent success and stability is to understand the changing market and regulatory scenarios within your economy. Whether you’re managing operations in the UAE, KSA, or dealing with international geographies, keeping up with regulatory changes ensures growth and stability. To dive deeper into the latest tax and regulatory trends in the GCC region, read our newsletter. Stay informed, stay compliant, and drive success in your business.