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November 10, 2025

GCC Tax and Regulatory Updates: What Businesses in the UAE, Oman, and Qatar Need to Know

Tax and regulatory landscapes across the GCC continue to evolve, with new reforms reshaping how businesses operate and comply. From Dubai allowing free-zone companies to trade on the mainland, to Oman launching its e-invoicing framework, to procedural tightening in Qatar — every change signals the region’s accelerating shift toward transparency and digitalisation.

At Nishe, we’ve summarised the most important updates your business needs to know this month — and what they mean in practice.

UAE: Dubai Opens Mainland Market Access for Free-Zone Companies

Resolution: Executive Council Resolution No. 11 of 2025

Dubai has introduced a landmark reform allowing free-zone companies to conduct business on the mainland — a move that could reshape corporate structures and market strategies.

Key Highlights:

  • Free-zone entities can now operate outside their zones, provided they obtain the relevant licence or permit from the Dubai Department of Economy and Tourism (DET). 
  • The rule excludes financial institutions licensed in the DIFC. 
  • Companies must maintain separate financial records for mainland and free-zone activities. 
  • DET and free-zone authorities will soon publish a list of eligible activities. 
  • Existing entities have one year (extendable by another year) to regularise their operations. 

Why it matters:
This reform bridges the long-standing divide between mainland and free-zone business activities, allowing companies to scale more flexibly and operate with fewer structural barriers. However, compliance — particularly around accounting segregation — will be critical.

Oman: E-Invoicing Goes Live from August 2026

Oman joins the UAE and Saudi Arabia in adopting mandatory e-invoicing, marking another step toward digital tax administration across the GCC.

Implementation Timeline:

  1. Publication of technical specifications (Nov 2025) – OTA to release XML/PEPPOL data standards
  2. Accreditation of ASPs (Dec 2025 – Feb 2026) – Registration and testing for authorised providers
  3. Go-Live Phase 1 (Aug 2026) – Top ~100 taxpayers mandated to issue e-invoices
  4. Wider rollout (2027) – Onboarding by industry and turnover
  5. Full implementation (By Aug 2028) – All B2B and G2B transactions covered

Key Features:

  • Based on the PEPPOL 5-corner model (no pre-clearance). 
  • Enables real-time invoice exchange between buyers and sellers. 
  • Fully integrated with ERP/accounting systems. 
  • Mandates secure digital archiving and audit trail functionality. 

Why it matters:
Oman’s e-invoicing system will transform financial reporting for taxpayers, particularly for large and mid-sized companies. Early preparation is essential to align systems, select an accredited service provider, and ensure compliance by the 2026 deadline.

Qatar: New Requirement for Withholding Tax (WHT) Returns

Taxpayers in Qatar filing WHT returns via Dhareeba must now include a Contract Declaration Reference Number before submission.

Key Takeaways:

  • If the related contract has not been declared, WHT submission cannot proceed. 
  • The contract reference number must appear in the “Transactions” section in Dhareeba. 
  • Businesses should declare contracts early to avoid delays. 

Why it matters:
This change strengthens the link between contract declarations and WHT payments, reinforcing transparency in corporate tax compliance. Businesses should review their internal processes to ensure all contracts are logged before the filing window.

The Takeaway

From e-invoicing mandates to expanded business permissions, the GCC continues to harmonise and digitise its tax systems. The message is clear: compliance is becoming more integrated, more transparent, and more digital.

At Nishe, we help businesses navigate these transitions, from readiness assessments to system implementation,

 ensuring compliance without disruption.

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