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September 01, 2025

August 2025 GCC Tax Updates: UAE, Bahrain, and Qatar Compliance Roundup

Staying on top of tax compliance in the GCC is critical for businesses operating across the region. With the UAE, Bahrain, and Qatar all introducing important changes this month, finance teams and business owners need to act quickly to avoid penalties and stay compliant.

At Nishe, we’ve summarised the August 2025 tax updates to keep you informed and prepared.

UAE Tax Updates (August 2025)

1. FTA Decision No. 7 of 2025 – New Corporate Tax Rules for Tax Groups

The Federal Tax Authority (FTA) has issued Decision No. 7 of 2025, effective 1 January 2025, introducing strict new reporting requirements for Tax Groups under UAE Corporate Tax.

Key highlights:

  • Mandatory Aggregated Financial Statements (AFS): Tax Groups must prepare audited aggregated financial statements (not consolidated).
  • Audit Requirements: AFS must be audited under International Standards on Auditing (ISA) and submitted within 9 months of the tax year-end.
  • Preparation rules:
    • Apply IFRS or IFRS for SMEs.
    • Eliminate intra-group transactions.
    • Exclude consolidation adjustments (e.g., goodwill, fair value changes).
    • Investments outside the group shown at cost less impairment.
    • Present in AED with full disclosures.
  • Statements required: Financial position, profit or loss, other comprehensive income, and changes in equity (cash flow statement not required).

 Read the full FTA Decision here.

2. Mandatory Contact Validation on EmaraTax

The FTA now requires all businesses to validate their email and phone numbers through OTP on the EmaraTax portal.

  • You can postpone the validation, but it will remain under pending requests.
  • If not completed within 20 business days, penalties will apply for late amendment.

3. VAT Refund Deadline for Non-Resident Businesses

Non-resident businesses had until 31 August 2025 to file VAT refund applications for UAE expenses incurred during 2024.

  • Claims must be submitted via the Business Visitor Refund Scheme on the EmaraTax portal.
  • The refund window runs 1 March – 31 August annually.

4. New Corporate Tax User Manuals on EmaraTax

The FTA has released four new user manuals to guide taxpayers through the EmaraTax portal:

  • Corporate Tax De-Registration (Aug 25, 2025)
  • Corporate Tax Period Change (Aug 25, 2025)
  • Corporate Tax Return Filing (Aug 22, 2025)
  • Corporate Tax Payments (Aug 18, 2025)

These manuals provide step-by-step instructions for key UAE Corporate Tax compliance processes.

Bahrain Tax Updates (August 2025)

1. VAT Imports & Exports Guide – Zero-Rating Rules Updated

The National Bureau for Revenue (NBR) has revised its VAT guidance to clarify zero-rating rules for exports:

  • Exports now classified as direct or indirect.
  • Indirect exports qualify for 0% VAT only if:
    • Buyer is non-resident.
    • Goods have not been supplied locally beforehand.
    • Export evidence is held within 90 days of supply.
  • Only the final supply in a chain qualifies for zero-rating.

Read the full NBR guide.

2. Updated DMTT Scope Guide

The NBR has also updated the Entities in Scope of Domestic Minimum Top-up Tax (DMTT) Guide. Key changes include:

  • Expanded definitions of exclusions.
  • Formalisation of safe harbour rules.
  • New guidance on currency conversion elections for DMTT.

 Read the updated DMTT guide.

Qatar Tax Updates (August 2025)

1. Qatar GTA Return Filing Deadline Reminder

The General Tax Authority (GTA) had reminded taxpayers that the deadline for filing 2024 fiscal year returns was 31 August 2025 via the Dhareeba Tax Portal.

  • All registered taxpayers must submit their tax returns and supporting documentation before the deadline.
  • Late filing will result in penalties.

What This Means for Businesses

Across the GCC, tax authorities are pushing for:

  • Greater digitalisation (e-invoicing, online validations, e-portals).
  • Stronger compliance (audits, documentation, structured submissions).
  • Faster deadlines (shorter filing and validation windows).

For businesses, this means proactive preparation is critical. From updating your systems for e-invoicing in the UAE to ensuring export VAT documentation in Bahrain is watertight, the cost of delay is high.

Stay Ahead with Nishe

Tax frameworks across the GCC are evolving quickly. The UAE is leading with FTA Decision No. 7 of 2025 on Tax Groups, Bahrain has tightened zero-rating VAT rules, and Qatar is reminding businesses to meet deadlines.

At Nishe, we help businesses interpret these changes, assess risks, and stay compliant without slowing down operations.

Need tailored advice on UAE Corporate Tax compliance or VAT across the GCC? Talk to our team today.

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