BDO GCC TAX UPDATE – Quarter 2 2024
BDO GCC TAX UPDATE – Quarter 2 2024
BDO publishes a Gulf Cooperation Council (GCC) tax update on a quarterly basis. In Q2 2024, there is, as always, plenty to report as the tax scene across the region continues to develop and change.
The UAE has been particularly active in Q2: one of the most important developments has been the publication of the Federal Tax Authority’s (FTA) guide on the special regime for free zone companies. This regime allows free zone companies to apply corporate tax at a rate of zero percent to income derived from certain ‘qualifying activities’. This is a very useful relief - but the rules are complex and certain areas of the legislation could be open to interpretation. This new guide from the FTA is welcome as a result, because it provides detailed information on how the FTA will apply the free zone relief and answers many of the concerns that have been raised by the free zone community.
There is some important news on the Foreign account tax compliance act (FATCA) and Common reporting standard (CRS) in Kuwait, where the Ministry of Finance has announced the suspension of certain reporting deadlines. Financial institutions that are affected should make sure they are fully updated on the details and should be on the lookout for updates.
Qatar continues to strengthen its network of tax treaties and has entered into new agreements with the UAE and Saudi Arabia.
In Saudi Arabia, there have been announcements about a new regime for advance pricing agreements. The full legislation and guidance have not yet been published but this is an important development as it will provide support for multi-national businesses and the growing cross-border trade in the region.
In Bahrain, the National Bureau for Revenue continues to be proactive, with the issue of updates to both the general guide and real estate guide, a programme of market inspections and taxpayers’ workshops. There is also a new hotel accommodation fee, imposed by the Ministry of Tourism.
E-invoicing continues to be a hot topic in the region and the Oman Tax Authority recently held a seminar on the subject. E-invoicing is likely to be introduced in Oman in 2025.
We hope you find this summary of the tax news for the region useful. if you would like further information on any of the topics discussed, or on any other tax matter, please see the contact details for all our GCC offices on the back page of this publication.
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The UAE has been particularly active in Q2: one of the most important developments has been the publication of the Federal Tax Authority’s (FTA) guide on the special regime for free zone companies. This regime allows free zone companies to apply corporate tax at a rate of zero percent to income derived from certain ‘qualifying activities’. This is a very useful relief - but the rules are complex and certain areas of the legislation could be open to interpretation. This new guide from the FTA is welcome as a result, because it provides detailed information on how the FTA will apply the free zone relief and answers many of the concerns that have been raised by the free zone community.
There is some important news on the Foreign account tax compliance act (FATCA) and Common reporting standard (CRS) in Kuwait, where the Ministry of Finance has announced the suspension of certain reporting deadlines. Financial institutions that are affected should make sure they are fully updated on the details and should be on the lookout for updates.
Qatar continues to strengthen its network of tax treaties and has entered into new agreements with the UAE and Saudi Arabia.
In Saudi Arabia, there have been announcements about a new regime for advance pricing agreements. The full legislation and guidance have not yet been published but this is an important development as it will provide support for multi-national businesses and the growing cross-border trade in the region.
In Bahrain, the National Bureau for Revenue continues to be proactive, with the issue of updates to both the general guide and real estate guide, a programme of market inspections and taxpayers’ workshops. There is also a new hotel accommodation fee, imposed by the Ministry of Tourism.
E-invoicing continues to be a hot topic in the region and the Oman Tax Authority recently held a seminar on the subject. E-invoicing is likely to be introduced in Oman in 2025.
We hope you find this summary of the tax news for the region useful. if you would like further information on any of the topics discussed, or on any other tax matter, please see the contact details for all our GCC offices on the back page of this publication.
Download