Middle East: Tax

Egypt’s VAT amendments introduced under the proposed amendments to the Value Added Tax Law No. 67 of 2016 seek to improve tax collection, support economic growth, and provide new incentives for businesses. The draft amendments reveal a relatively different approach in tax policy.

في الوقت الذي تسعى فيه الدول إلى تحقيق معادلة شديدة التعقيد بين زيادة الإيرادات العامة وتحفيز النشاط الاقتصادي،

Farah Al Qubtan is a legal professional with expertise in corporate and commercial advisory, commercial disputes, and company formation. She holds an LLB from the University of Reading and completed her Legal Practice Course at the University of Law in London.

Egypt’s VAT amendments introduced under the proposed amendments to the Value Added Tax Law No. 67 of 2016 seek to improve tax collection, support economic growth, and provide new incentives for businesses. The draft amendments reveal a relatively different approach in tax policy.

في الوقت الذي تسعى فيه الدول إلى تحقيق معادلة شديدة التعقيد بين زيادة الإيرادات العامة وتحفيز النشاط الاقتصادي،

Most businesses operating in the UAE start managing their finances with a basic setup at the outset. They hire an accountant to work on invoices, payroll, VAT, vendor payments, reconciliations, and reporting. For the initial few months, the system works fine. However, as businesses grow, the department notices a surge in transactions. There are more employees, multiple bank accounts, and tighter deadlines to manage.

On 16 March 2026, Decision of the Council of Ministers No. 4 of 2026 entered into force. The Decision introduces a mechanism allowing the direct application of withholding tax rates under double tax treaties.

ZATCA has relaunched the Tax Penalties Exemption Initiative, effective January 1 to June 30, 2026, offering taxpayers a renewed opportunity to regularize their tax positions.

In December 2025, ZATCA has clarified the distinction between transfer of know-how/knowledge and technical or consultancy services which directly affects Withholding Tax (WHT) treatment.

Qatar's General Tax Authority has introduced new clarifications on capital gains tax, featuring a targeted exemption for intra-group restructuring transactions. These measures aim to streamline corporate reorganisation, improve asset management efficiency, and strengthen the country's investment climate while maintaining transparency in tax obligations.

In recent years, the international tax system has witnessed significant developments in tools and mechanisms aimed at enhancing transparency and curbing base erosion and profit shifting practices. These challenges have compelled countries to seek more effective means of regulating cross-border transactions. In this context, Advance Pricing Agreements (APAs) have emerged as an important mechanism that contributes to achieving greater tax certainty and reducing disputes between multinational enterprises and tax authorities regarding the arm’s length pricing of related-party transactions.

On 16 March 2026, Decision of the Council of Ministers No. 4 of 2026 entered into force. The Decision introduces a mechanism allowing the direct application of withholding tax rates under double tax treaties.