Tax Saudi Arabia to expand VAT base as oil prices fall Saudi Arabia has introduced new regulations allowing visitors to the country to claim back value added tax (VAT) to facilitate the tourism industry, but it plans to widen the tax base to include online transactions. The world’s second largest oil producer is facing a steep decline in international oil prices on which the government relies […] April 22, 2025
Tax Trump tariffs threaten $22bn in Arab exports says UN Bahrain and Jordan are the countries likely to be most affected by tariffs planned by President Donald Trump on non-oil exports by the Arab world to the US worth nearly $22 billion, a United Nations body has warned. Despite a sharp fall in the region’s sales of oil to the US over the past decade, […] April 21, 2025
Opinion Tax To get tech giants to pay their fair share, the taxman needs AI too It's not easy for governments to track the activities of digital businesses. AI-powered tools can help April 9, 2025
Tax Bahrain approves environmental tax on companies Bahrain is to become the first country in the Arabian Gulf to introduce an environmental tax on companies as the island state struggles to rein in a growing budget deficit and bring government finances under control. The government of the region’s smallest nation by population has approved in principle a levy on carbon dioxide emissions […] March 26, 2025
Analysis Tax Bahrain considers raising taxes to reduce deficits Bahrain’s plan to end a long string of government budget deficits could prove burdensome to both businesses and people as it considers a raft of tax measures. The country is discussing a 12-point plan for its two-year budget, with measures including the introduction of a wider corporate tax, an increase in value added tax (VAT) […] March 6, 2025
Opinion Renewable Energy Taxation can be a catalyst in the renewable energy revolution Saudi Arabia and the UAE can lead the transition if their fiscal policies align with their ambition March 4, 2025
Tax New tax relief package expected in Egypt next month Egypt will announce a tax relief package for taxpayers and businesses next month, to increase the transparency of the tax system and encourage more foreign direct investment, it has been reported. The finance minister is overseeing the package’s implementation to ensure it meets business needs, the Egypt Today newspaper reported, citing Rasha Abdel Aal, head […] February 20, 2025
Economy Public wage bill cuts into infrastructure spend, Kuwait bank says Kuwait’s government is spending too much money on wages and not enough on pressing infrastructure needs, the country’s largest bank has said. “Kuwait is still facing structural challenges in its fiscal policy because allocations for wages and social aid account for nearly 80 percent of total spending,” the National Bank of Kuwait (NBK) said. Kuwait, […] February 19, 2025
Exclusive Sustainability Mashreq calls for state help to push green financing The UAE needs to introduce new incentives, subsidies and tax rebates to increase financing for sustainability projects in the country, a senior executive at Mashreq Bank has told AGBI. “We need the government to introduce incentives and subsidies to create the momentum, the tsunami of sustainable finance,” said Faisal Al Shimmari, Mashreq Bank’s head of […] February 10, 2025
Tax Bahrain’s expat tax move ‘likely to be replicated GCC-wide’ Bahrain is proposing to levy a tax on expatriate remittances, a move an industry expert believes is likely to be replicated in other neighbouring Gulf countries. Members of parliament in the kingdom this week supported a revised proposal which would mean expat remittances face a two percent tax. “It would not surprise me if other […] January 30, 2025
Tax Oman makes key changes to draft income tax law Oman has issued a new draft personal income tax law with key amendments, raising the exemption threshold and lowering proposed tax rates. The timeline for the law’s implementation remains uncertain. The latest draft, which was delayed last year, has been approved by the State Council and Majlis Al Shura and will now move to Sultan […] January 30, 2025
Analysis Tax GCC weighs impact of Trump’s global corporate tax moves Tax professionals in the Gulf are assessing how President Donald Trump’s pull-back of US support for an international corporate tax framework might affect GCC states’ implementation of it. In a day-one executive order last week, the returning US president repudiated “any commitment” made by the previous Biden administration toward the Organisation for Economic Co-operation and […] January 30, 2025
Opinion Trade Trade policy will be central to Trump’s second term Many of the US president’s fresh executive orders will have substantial ramifications, including in the Gulf January 28, 2025
Tax Income tax ‘not on the table’ says UAE minister The UAE has no plans to introduce income tax, economy minister Abdulla bin Touq Al Marri has said, dismissing speculation the country was in discussions to end its traditional tax-free status. Speaking at the World Economic Forum in Davos, the minister also criticised the EU for keeping the Gulf nation on its blacklist of countries […] January 22, 2025
Tax Kuwait expects tax income to soar by 79% Kuwait expects its tax income to soar by nearly 79 percent annually when all taxes take effect within an International Monetary Fund-proposed tax reform programme. In a report published on Wednesday, the Arabic language daily Alqabas said taxes are projected to fetch Kuwait around 613 million dinars ($2 billion) in its 2024-2025 budget, which started […] January 22, 2025
Tax $660m a year ‘sin tax’ target set by Kuwait Kuwait hopes to raise 200 million dinars ($660 million) a year through a “sin tax” on unhealthy products as part of tax reforms proposed by the International Monetary Fund, the country’s finance minister said on Wednesday. Noora Al-Fassam told the official Kuwaiti news agency that her ministry was working on a new law for a […] January 16, 2025
Tax Kuwait’s multinationals tax to raise $825m a year, says minister Kuwait expects its tax on multinational businesses to generate nearly $825 million a year, the country’s finance minister has said. Noora Al Fassam told state television on Tuesday that the 15 percent tax would affect nearly 300 companies – 45 from Kuwait and the other GCC states and about 250 from other countries. Fassam described […] January 7, 2025
Tax Dubai distributors to swallow 30% tax on alcohol brands Dubai’s two main alcohol distributors have promised to absorb most, and in some cases all, of the 30 percent tax that was reinstated on alcoholic drinks from January 1. The Dubai Municipality tax on alcoholic beverages was suspended from the start of 2023, continuing into 2024. It was widely seen as an attempt to make […] January 3, 2025
Media & Advertising Abu Dhabi raises TV and film rebate to lure studios Abu Dhabi is hoping to attract the best of Hollywood, Bollywood and the Arab world to the emirate via an increased TV and film rebate that could save studios as much as $10 million on each production. Abu Dhabi Film Commission increased its refund for productions from 30 percent to 35 percent in October as […] December 30, 2024
Tax UAE indirect taxes generate up to $3bn per year Indirect taxes in the UAE generate between AED10 and AED11 billion ($2.72 billion-2.99 billion) annually, contributing substantially to the Gulf state’s AED65 billion federal budget, a senior government official has said. These tax revenues bolster economic growth and fortify the federal government’s financial position, the UAE state-run Wam news agency reported, quoting Younis Haji Al Khoori, […] December 23, 2024
Tax More taxes could shield GCC from protectionism, says IMF GCC countries should consider new taxation options to shore up their public finances and shield their economies from rising global protectionism, according to the International Monetary Fund. That means regional governments need to continue diversifying away from fossil fuels and boost the role of the private sector, all the while identifying new tax revenues and […] December 20, 2024
Analysis Tax UAE’s corporate tax rules pose a complex challenge Companies operating in multiple countries with differing tax regulations face a complex challenge to comply with the UAE’s higher corporate earnings bracket announced this month. The UAE has said it will increase corporate tax on multinationals to 15 percent of profit from January 1, 2025. The higher rate will apply to companies operating in more […] December 17, 2024
