Welcome to BDO’s Quarterly Tax Update for the GCC. The first quarter of 2024 has started with a flurry of activity and there are some important changes across the region.
BDO’s tax newsletter includes all the important tax developments across the region during the first quarter of 2024 and can be accessed via the download link on the right. Highlights of the publication are as follows:
In Saudi Arabia, further details of the reliefs for Saudi regional headquarters (RHQs) have been released. This is something that is growing in importance and any multinational companies wishing to bid for contracts with government agencies in Saudi Arabia should make sure they are fully conversant with the RHQ rules, as well as the potential benefits.
Some of the biggest tax developments of 2023 came from the UAE, with the introduction of the new corporate tax. 2024 has started in a similar vein, with a large number of new guidance notes and clarifications on UAE corporate tax and VAT. These include detailed guidance on corporate tax groups and confirmation of the deadlines for corporate tax registration. There are penalties for missing the registration deadlines so, if you are not yet registered, it is important to check the registration deadline for your business. Details can be found in the UAE section of the newsletter.
An unexpected charge in the UAE was the announcement of a new law on the taxation of foreign banks operating in the Emirate of Dubai. This is an Emirate level change and we might see similar changes from the other Emirates in due course.
Kuwait has recently entered into some new double tax avoidance agreements, including an agreement with the UAE. This is particularly significant as it is the first double tax agreement it has signed with another GCC state. Negotiations are also underway for a DTAA with Saudi Arabia.
Qatar has also been active on the DTAA front, with the signing of new agreements with Estonia and Uzbekistan and the ratification of an earlier agreement with Egypt.
There is some interesting news from Bahrain, where the retention period for VAT records has been extended to ten years. There is also some more information on the proposed implementation of the new Bahrain corporate tax. No details have been released as yet, but we understand that progress has been made.
In Oman, the Tax Authority has announced a scheme, ‘the Tax Lability Settlement Initiative’, which will support taxpayers with outstanding tax liabilities arising before 1 Jan 2020. Full details of the scheme rules and conditions, together with an application form, are published on the Tax Authority’s website.
Finally, the OECD BEPS initiative continues to be mentioned across the region, with further discussion of Pillar 2 and the global minimum tax rate.
We hope you find this BDO tax newsletter interesting and informative. Contact details for the BDO firms in each country are provided at the end of the newsletter and our tax experts will be pleased to assist if you need help with any tax related matter or have any other queries. Please feel free also to reach out to your local firm’s tax expert, whose details are included on this page.
BDO’s tax newsletter includes all the important tax developments across the region during the first quarter of 2024 and can be accessed via the download link on the right. Highlights of the publication are as follows:
In Saudi Arabia, further details of the reliefs for Saudi regional headquarters (RHQs) have been released. This is something that is growing in importance and any multinational companies wishing to bid for contracts with government agencies in Saudi Arabia should make sure they are fully conversant with the RHQ rules, as well as the potential benefits.
Some of the biggest tax developments of 2023 came from the UAE, with the introduction of the new corporate tax. 2024 has started in a similar vein, with a large number of new guidance notes and clarifications on UAE corporate tax and VAT. These include detailed guidance on corporate tax groups and confirmation of the deadlines for corporate tax registration. There are penalties for missing the registration deadlines so, if you are not yet registered, it is important to check the registration deadline for your business. Details can be found in the UAE section of the newsletter.
An unexpected charge in the UAE was the announcement of a new law on the taxation of foreign banks operating in the Emirate of Dubai. This is an Emirate level change and we might see similar changes from the other Emirates in due course.
Kuwait has recently entered into some new double tax avoidance agreements, including an agreement with the UAE. This is particularly significant as it is the first double tax agreement it has signed with another GCC state. Negotiations are also underway for a DTAA with Saudi Arabia.
Qatar has also been active on the DTAA front, with the signing of new agreements with Estonia and Uzbekistan and the ratification of an earlier agreement with Egypt.
There is some interesting news from Bahrain, where the retention period for VAT records has been extended to ten years. There is also some more information on the proposed implementation of the new Bahrain corporate tax. No details have been released as yet, but we understand that progress has been made.
In Oman, the Tax Authority has announced a scheme, ‘the Tax Lability Settlement Initiative’, which will support taxpayers with outstanding tax liabilities arising before 1 Jan 2020. Full details of the scheme rules and conditions, together with an application form, are published on the Tax Authority’s website.
Finally, the OECD BEPS initiative continues to be mentioned across the region, with further discussion of Pillar 2 and the global minimum tax rate.
We hope you find this BDO tax newsletter interesting and informative. Contact details for the BDO firms in each country are provided at the end of the newsletter and our tax experts will be pleased to assist if you need help with any tax related matter or have any other queries. Please feel free also to reach out to your local firm’s tax expert, whose details are included on this page.