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.
