Dear colleagues,
We are pleased to present the next issue of our digest of tax and regulatory changes in the UAE and the Gulf countries for the period January–February 2026.
In this issue, we have collected key legislative and practical updates that may affect business and tax planning in the GCC region.
In the UAE section, we review the latest FTA initiatives, including the updated Service Guide, updates relating to excise tax and natural losses of excise goods, new rules on exchange of tax information, as well as the introduction of digital tools — advance Corporate Tax payments and an online eligibility check for the application of a penalty waiver. The issue also includes a Corporate Tax exemption for certain sports organizations, the updated excise guide (including the new taxation model for sweetened beverages), recognition of VARA as a competent authority for qualifying financial services, and guidance on working with EmaraTax through Tasheel agents.
In the Gulf countries – Saudi Arabia adopted new rules for special economic zones (SEZ), Qatar introduced detailed Pillar Two rules for the implementation of IIR and DMTT, and Bahrain issued updates to the general VAT guide.
In this issue you will find updates on the following topics:
UAE:
- FTA published an updated Service Guide;
- FTA Decision No. 1 on shortages of excise goods, amending Decision No. 6 of 2025;
- UAE Cabinet Decision No. (209) of 2025 on exchange of information upon request for tax purposes has been published;
- FTA introduces advance Corporate Tax payments and an online check of the possibility to apply a penalty waiver;
- Corporate Tax exemption for certain sports organizations (UAE Cabinet Decision No. 1 of 2026);
- FTA published ETGTP2 – Taxable Persons Guide (Excise Goods);
- UAE Ministry of Finance recognized VARA as a competent authority for qualifying activities;
- FTA published guidance on Corporate Tax registration through Tasheel agents.
Saudi Arabia:
- Saudi Arabia approved new rules for special economic zones (SEZ).
Qatar:
- Detailed Pillar 2 rules have been published (Cabinet Decision No. 2 of 2026).
Bahrain:
- The general VAT guide has been updated in relation to manpower services.
