United Arab Emirates (UAE)
Corporate Tax
Ministerial Decision No. (96) of 2025 on Conditions to Exempt Certain Real Estate Investment Trusts from Corporate Tax
The UAE Ministry of Finance (MoF) has issued Ministerial Decision No. 96 of 2025 (effective from 1 January 2025) notifying 10% as the minimum percentage of shares that must be floated on a Recognised Stock Exchange for a Real Estate Investment Trust whose shares are listed for the first time on a Recognised Stock Exchange during the period from 1 May 2025 to 31 May 2025.
The above notified minimum percentage of 10% shall apply instead of the percentage specified in subparagraph (1) of paragraph (b) of Clause (1) of Article (4) of Cabinet Decision No. 34 of 2025 referred to above.
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Ministerial Decision No. (88) of 2025 on the Commentary and Agreed Administrative Guidance for the Purposes of Cabinet Decision No. (142) of 2024 on the Imposition of Top-Up Tax On Multinational Enterprises
The UAE Ministry of Finance (MoF) has issued Ministerial Decision No. 88 of 2025 (effective from 1 January 2025) stipulating the list (attached to this Decision) which shall be adopted for the purposes of Cabinet Decision No. (142) of 2024 referred to above.
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Taxpayer User Manual – Corporate Tax Self Registration – Version 3.0
The Federal Tax Authority has issued Taxpayer User Manual – Corporate Tax Self Registration – Version 3.0 on 10th June, 2025, which provides a comprehensive step by step navigation module on the EmaraTax Portal of the FTA for undertaking the self -registration under UAE Corporate Tax Laws.
This version 3.0 supersedes the earlier version 1.0 and 2.0 of the user manual.
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Indirect Tax
Standards, Controls and Procedures for Dealing with Shortage Within the Designated Zone due to the Natural Characteristics of Excise Goods :
The Federal Tax Authority has issued Decision No. 6 of 2025, setting out the standards, controls and procedures for recognising "natural shortage" of excise goods inside Designated Zones i.e., production, storage or transport losses that are beyond a taxpayer's control and make the goods unfit for release for consumption. The ruling, effective 1 July 2025, introduces clear definitions (e.g., "Excise Goods", "Natural Shortage" and "Independent Competent Entity") and aligns with existing excise legislation to ensure consistent, transparent treatment of unavoidable product losses.
Excise businesses must secure an annual shortage-limit report from an FTA-approved lab, maintain evidence for any losses, and ensure each period's declaration stays within that limit.
They must renew the report every year and accommodate unannounced inspections by the FTA or the lab to verify the figures.
Transitional relief deems any Report obtained within six months of 1 July 2025 valid for a full year from that date. Non-compliance such as submitting declarations without a valid Report may expose businesses to excise reassessments and penalties, underscoring the importance of timely documentation and proactive engagement with approved entities.
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Customs Notice No. (2025/09) Concerning the implementation of the Comprehensive Economic Partnership Agreement between the United Arab Emirates and the Republic of Serbia
UAE Customs has issued Customs Notice 09/2025 confirming that the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the Republic of Serbia ratified by Federal Decree 13 of 2025 enters into force on 1 June 2025, instructing all customs departments to adopt the new preferential tariff and facilitation measures from that date. Clients trading with Serbia should therefore review their HS-code classifications, update import–export documentation and adjust pricing models now to capture the duty savings and streamlined border-clearance benefits offered under the agreement.
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Kingdom of Saudi Arabia (KSA)
ZATCA Extended the tax amnesty scheme until 31 December 2025
On 27 June 2025, the Zakat, Tax, and Customs Authority (ZATCA) announced the extension of the "Cancellation of Fines and Exemption of Financial Penalties" initiative, until 31 December 2025. providing relief to taxpayers who meet the qualifying requirements.
We, therefore, highly encourage taxpayers to take advantage of the initiative and the most recent extension by meeting ZATCA's compliance requirements within the specified timeframes.
Applicability
The tax amnesty extension is applicable to penalties relating to corporate income tax (CIT), withholding tax (WHT), value-added tax (VAT), excise tax, and real estate transaction tax (RETT).
The initiative applies to unpaid fines, including fines related to:
- Late registration under all tax laws and regulations
- Delayed payment
- Late filing of tax returns
- Amendments in VAT returns
- Violation of VAT field detections
- Violation of e-invoicing regulations
It is important to highlight that the above incentives are applicable to the amendments in any tax returns, either made by the taxpayer under the tax amnesty initiative or by ZATCA through assessments or reassessments
Fines excluded from tax amnesty
The tax amnesty initiative excludes the following fines:
- Fines paid before the effective date of this amnesty initiative.
- Fines resulting from "tax evasion" violations, including late registration, delay in payment of taxes, late filing of returns, amendments in tax returns, and field detections.
- Fines associated with tax returns due after 30 June 2025.
Mandatory requirements
To benefit from the tax amnesty initiative, the following conditions are required to be met:
- Registration with ZATCA
- Submission of due tax returns along with the payment of due tax liabilities or applying for an installment plan, as approved by ZATCA
Note:It is important to note that taxpayers have the right to make payment of due taxes in installments according to an installment plan submitted before the expiry of the amnesty and approved by ZATCA, and taxpayers can benefit from a waiver of late payment penalties for the installments due after 31 December 2025. However, in case of cancellation of the installment plan as a result of taxpayer noncompliance of the installment plan, ZATCA shall calculate all fines due to the unpaid amounts as of the original payment due date.
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ZATCA Announce of 23rd wave for e-invoicing phase 2 implementation
The Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the twenty-third wave for implementing the integration phase of e-invoicing, as it clarified that the twenty-third wave included all taxpayers whose revenues subject to VAT exceeded SAR750 thousand during the year 2022 or 2023 or 2024. VAT registered taxpayers meeting the criteria should integrate their e-invoicing solutions with the Fatoora platform by no later than 31 March 2026.
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Oman
The Tax Authority Boosts Tax Culture Initiative with Intensive Awareness Programs
The Tax Authority in Oman continues to implement the third phase of its "Tax Culture Initiative" in Al Batinah North and South Governorates, in collaboration with various public and private entities. The initiative aims to promote tax awareness, encourage voluntary compliance, and support a sustainable national economy through public engagement.
Key activities last week included:
- Field Presence: Tax specialists were available at major commercial centers like Nesto Hypermarket (Saham), City Centre (Sohar), Lulu Hypermarket, Grand Center (Barka), and Golden Dragon Markets, offering guidance, tax services, and answering public inquiries.
- Workshops: Educational workshops were held at Sohar University, Saham Vocational College, and the Omani Women's Association, focusing on practical tax procedures and the role of women in fostering tax culture.
- Awareness Outlets: Strategic tax information booths were set up to make tax services more accessible to the public.
The initiative focuses on simplifying tax concepts" to "The initiative focuses on simplifying tax concepts for businesses and individuals".
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Issuance of Personal Income Tax (PIT) Law
His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. 56/2025, introducing the Personal Income Tax (PIT) Law in Oman. The law includes76 articles across 16 chapters will come into effect in 2028.
Key Highlights:
- Who is taxed: Natural persons earning over OMR 42,000 annually from specified income sources.
- Tax rate: 5% on taxable income.
- Exemptions and deductions: The law accounts for education, healthcare, housing, inheritance, zakat, and donations, reflecting the Sultanate's social values.
- Impact: About 99% of the population will not be affected, as the exemption threshold is set high.
- Objectives:
- Diversify income sources and support Oman Vision 2040.
- Reduce reliance on oil, aiming for 15% contribution to GDP by 2030 and 18% by 2040.
- Promote social justice through wealth redistribution.
- Help fund the social protection system and the national budget.
Preparatory steps have been completed, including:
- dedicated electronic tax system linked with relevant institutionsugh wealth redistribution.
- Trained human resources at the Tax Authority.
- Executive regulations to be issued within one year.
- Guidance manualsfor taxpayers to be released progressively
Royal Decree - 2025 -> Executive Regulation - 2026 -> Effective – 2028
The PIT law reflects a balanced approach, ensuring economic contribution while considering social fairness.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.