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Justice GCC > Legislation > GCC Tax Authorities Issue Updated Guidance on Minimum Tax and Deductions
Legislation

GCC Tax Authorities Issue Updated Guidance on Minimum Tax and Deductions

NewsDesk
Last updated: August 2, 2026 12:00 am
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The KPMG Bahrain GCC tax news bulletin published on 2 August 2026 compiled the latest legislative and administrative changes introduced by fiscal authorities in the region. Qatar’s General Tax Authority activated the Pillar Two registration module on the Dhareeba platform the same day requiring multinational enterprise groups to enrol separately from their standard income tax obligations. The KPMG document indicated that registration must occur within three months setting a 31 October 2026 deadline for groups with fiscal years commencing in 2025. This development supports implementation of the global minimum tax initiative across the Gulf.

The National Bureau for Revenue in Bahrain issued its Domestic Minimum Top-up Tax Computation Guide in June 2026 providing a comprehensive methodology for calculating the 15 per cent minimum rate applicable to in-scope multinational entities according to the KPMG bulletin. A draft corporate income tax law originally referred to the cabinet on 29 December 2025 remains under review. The bureau additionally released revisions to its value-added tax registration guide on 22 July 2026 the excise tax registration manual on 28 July and the general value-added tax guide on 29 July. These documents were updated in late July 2026 the KPMG report showed.

Oman’s Tax Authority published Decision No. 180/2026 on 26 July 2026 amending the executive regulations governing income tax deductions the KPMG report noted. The amendment introduces Article 18 bis that imposes stricter criteria on the deductibility of expenses mandated by government administrative decisions or public entities. Such costs must be essential to the taxpayer’s core business activities receive explicit authorisation from the chairman of the tax authority and arise outside any legal or regulatory violation for them to qualify. Separate coverage by Lexis Middle East on 26 July 2026 confirmed the new limitations.

In the United Arab Emirates the Federal Tax Authority issued public clarification CPT012 on 30 July 2026 detailing the corporate tax treatment of Additional Tier 1 instruments according to the 2 August KPMG compilation. The authority simultaneously hosted virtual workshops throughout the final week of July on foundational tax concepts corporate tax return preparation excise tax obligations and electronic invoicing procedures. The clarification addresses the treatment of such instruments for corporate tax purposes.

Saudi Arabia’s Zakat Tax and Customs Authority planned a virtual workshop on 4 August 2026 dedicated to the value-added tax refund process for qualifying applicants the KPMG bulletin reported. Registration for the session was made available through the authority’s designated portal ahead of the event. The session addressed the refund mechanism available under the kingdom’s value-added tax framework.

The series of measures forms part of the ongoing implementation of the OECD Pillar Two framework across the GCC according to analysis contained in the KPMG bulletin and a PwC Middle East review published earlier in 2026. Most jurisdictions set 1 January 2025 as the effective date for domestic minimum top-up taxes with full implementing regulations still being developed in certain markets. Tax professionals expect further technical guidance on safe harbours filing mechanics and transitional provisions before the close of 2026.

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ByNewsDesk
Justice GCC NewsDesk is the desk responsible for Justice GCC's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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