Gulf & GCC economic news and analysis
Bahrain is the only GCC country with 0 % corporate tax for most businesses. There is no corporate income tax, no capital gains tax, and no withholding tax on dividends or interest. The single exception is the Domestic Minimum Top-up Tax (DMTT)
UAE Small Business Relief (SBR) allows resident taxpayers with annual revenue at or below AED 3 million to treat their taxable income as zero — effectively paying no corporate tax. SBR must be actively elected on the tax return filed through the
The UAE charges 5 % Value Added Tax (VAT) on most goods and services. VAT registration with the Federal Tax Authority (FTA) is mandatory once taxable supplies exceed AED 375,000 in any rolling 12-month period. Voluntary registration is available
Saudi Arabia applies a dual tax system: foreign-owned entities pay 20 % corporate income tax (CIT) on net profits, while Saudi and GCC nationals pay 2.5 % Zakat on the entity’s Zakat base. SEZ entities benefit from a reduced 5 % CIT rate for up t
UAE free zone entities pay 0 % corporate tax on qualifying income if they achieve Qualifying Free Zone Person (QFZP) status under Ministerial Decision No. 229 of 2025. QFZP status requires meeting six strict conditions — substance, qualifying act
The UAE levies a 9 % federal corporate tax on net taxable income above AED 375,000. The first AED 375,000 is taxed at 0 %. Every UAE entity — mainland, free zone, and offshore — must register with the Federal Tax Authority (FTA), even if it owes
The six GCC countries apply five different corporate tax models, ranging from 0 % in Bahrain to 20 % in Saudi Arabia for foreign-owned entities. The UAE’s 9 % federal corporate tax — introduced in June 2023 — sits in the middle, with a 0 % rate a
