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April 02, 2025

March GCC Tax & Compliance Updates: What Your Business Needs to Know

At Nishe, we know how quickly the regulatory landscape can shift across the GCC. That’s why we’re committed to keeping our clients informed and confident in the face of change. Here’s a round-up of the most important tax and compliance updates across the region this March.

Oman: Expanding Global Transparency

Oman Expands Automatic Exchange of Financial Information Oman has added Canada, Hong Kong, Kenya, and Moldova to its network for automatic exchange of financial account information, effective January 2025. This move aligns Oman with the OECD’s Common Reporting Standard (CRS), reinforcing the country’s commitment to tax transparency and global cooperation.

What this means for you:

  • Omani financial institutions must review and update their due diligence processes.
  • Individuals and multinational companies may face new compliance and reporting obligations.

UAE: Building a Future-Ready Tax Framework

1. Accreditation Rules for E-Invoicing Service Providers Ministerial Decision No. 64 of 2025 introduces clear eligibility and accreditation criteria for e-invoicing service providers.

Key Takeaways:

  • Only Accredited Service Providers (ASPs) can operate under the new e-invoicing system.
  • Providers must be Peppol-certified, possess ISO 22301 and ISO/IEC 27001 certifications, and meet capital, insurance, and compliance standards.
  • Accreditation is valid for two years and must be renewed.

Why this matters: This move creates a unified, secure framework for electronic invoicing in the UAE, ensuring consistency with global standards.

2. EmaraTax Platform Adds Family Foundations Application. Family Foundations can now apply for Unincorporated Partnership status through the EmaraTax portal.

Benefits:

  • Approved foundations will no longer need to file corporate tax returns.
  • Individual beneficiaries will have to assess their own corporate tax responsibilities.

Bahrain: Sustainability and Compliance at the Forefront

1. Environmental Tax Introduced Bahrain has rolled out a new Environmental Tax as part of a broader economic reform package.

What you need to know:

  • The tax applies to companies in high-pollution industries.
  • Incentives are available for businesses that hire Bahraini nationals and adopt greener practices.

2. DMTT Registration Manual Released The National Bureau for Revenue (NBR) has published a step-by-step guide for registering under the Domestic Minimum Top-Up Tax (DMTT).

Highlights:

  • MNEs with revenue over EUR 750 million must appoint a Filing Constituent Entity and register by January 30, 2025.
  • Late or inaccurate registration can result in penalties of up to BHD 100,000.

3. Updated VAT Guide Bahrain has extended VAT record retention from 5 to 10 years, or 15 years for real estate.

Other key changes:

  • VAT on phones: Only partially recoverable where there is a clear split between personal and business use.
  • Prepaid phone credit VAT is non-recoverable.

Saudi Arabia: E-Invoicing Moves Ahead

Wave 22 of E-Invoicing Integration Announced ZATCA has selected businesses for the 22nd wave of e-invoicing integration.

What to know:

  • Applies to all businesses whose VATable revenue exceeded SAR 1 million in 2022, 2023, or 2024.
  • Selected taxpayers must integrate their systems with the Fatoora platform by 31 December 2025.

Stay Ahead of the Curve

Tax compliance isn’t just about avoiding penalties, it’s about building resilience and trust in your business.

At Nishe, we help SMEs across the GCC stay compliant, confident, and ready for growth. If any of these updates apply to you, or if you’re unsure where to start, get in touch with our team.

We’re here to help you turn regulations into opportunities.

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