Welcome to our latest digest, detailing the critical tax and regulatory developments across the UAE and GCC from December 2025 through January 2026.
The new year has begun with significant momentum, particularly in the UAE, where authorities have introduced a series of key reforms affecting VAT, Excise Tax, and Corporate Tax. Highlights include the new Reverse Charge mechanism for metal scrap, a tiered excise model for sweetened drinks, and guidance on Advanced Pricing Agreements.
Beyond the UAE, regional evolution continues. Notable developments include Bahrain’s announcement of a future Corporate Tax, Qatar’s advancements on Pillar Two, Oman’s plans for a tax-exempt financial center, and Saudi Arabia’s extension of its tax amnesty program alongside key clarifications.
This edition provides updates on these and other essential changes, offering the insights you need to navigate the evolving compliance landscape.
In this edition, you will find updates on:
UAE
- The Ministry of Finance introduces Reverse Charge on Metal Scrap (Decision No. 153 of 2025)
- The Ministry of Finance Issues Cabinet Decision No. 198 of 2025 Amending the UAE Excise Tax Executive Regulation
- The FTA publishes FTA Decision No 11 of 2025 on Additional Cases where Excise Tax Paid on Excise Goods may be Deducted and Controls for such Deduction
- The FTA publishes Excise Tax Public Clarification EXTP013 on the Implementation of a tiered-volumetric model of Excise Tax for Sweetened Drinks
- The FTA publishes Part 1 of the Taxable Person Guide for Excise Tax – ETGTP1
- The FTA Publishes the Profit Margin Scheme VAT Guide
- The FTA publishes the Corporate Tax Guide on Advanced Pricing Agreements (CTGAPA1)
- UAE Ministry of Finance Issues Federal Decree Law No. 28 of 2025 Amending the UAE CIT Law
- Amendments to Certain Provisions of the FTA’s Service Fees, effective from 1 January 2026
- Updated List and Contact Details of the Ministry of Finance Pre-Approved eInvoicing Service Providers
Bahrain
- Corporate Income Tax to be Introduced from 2027
- NBR updates the Guide to the Scope of the DMTT Law and Registration Requirements
Qatar
- FTA Announces Tax Return Filing Period for the Financial Year Ended 31 December 2025
- Qatar’s IIR and DMTT under Pillar Two Rules received “Qualified” Status
Oman
- International Financial Center with Tax Exemption is to be Set Up in Muscat
Saudi Arabia
- KSA Extends Tax Amnesty Deadline to 30 June 2026
- ZATCA Clarifies Tax Treatment of Technical and Consultancy Services under the Income Tax Law and Double Taxation Avoidance Agreements
- ZATCA Approves Amendments to the Executive Regulations of the Excise Tax in Saudi Arabia, effective 1 January 2026
- ZATCA Publishes a Guide on VAT rules for Electronic Marketplaces and Online Platforms
We hope you find this edition insightful and helpful as you stay informed of the latest tax, compliance, and regulatory changes shaping the region.
