Welcome to the inaugural edition of the Gateley Middle East tax update.
As tax regimes across the GCC continue to evolve, businesses are facing an increasingly complex landscape of new legislation, regulatory guidance, digital reporting requirements and international tax developments. Keeping pace with these changes is critical, not only from a compliance perspective, but also to identify planning opportunities and manage emerging tax risks.
Through this publication, we aim to provide a concise overview of the most significant tax developments across the Middle East, together with our observations on the practical implications for businesses operating in the region. We also highlight relevant guidance, administrative developments and thought leadership from the Gateley tax team to help clients stay informed and prepared.
We hope you find this update useful and welcome any feedback as we continue to develop future editions.
Key developments
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UAE – Updated Guidance on Family Foundations
Released: 10 June 2026
What happened?
The UAE Federal Tax Authority (FTA) released an updated Corporate Tax Guide on the taxation of Family Foundations, providing further clarification on the treatment of family wealth and holding structures under the UAE Corporate Tax regime.
Our view
This update provides an opportunity for family offices and private wealth structures to revisit and optimise existing arrangements from a tax efficiency perspective, and confirm they remain aligned with both the latest FTA guidance and their broader succession, governance and asset-holding objectives.
Source: FTA Taxation of Family Foundations Guide (CTGFF1)
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GCC – Amendments to the Unified VAT Agreement
Released: 18 June 2026
What happened?
Amendments to the GCC Unified VAT Agreement were approved, introducing changes relating to intra-GCC supplies, import VAT, information sharing between tax authorities and VAT rate flexibility across member states.
Our view
The amendments further support tax authority cooperation across the GCC and may result in increased visibility of cross-border transactions (especially as the agreement already incorporates information exchange between GCC Tax Authorities). Businesses operating regional supply chains should monitor local implementation measures.
Source: GCC Unified VAT Agreement amendments and implementing resolutions
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Saudi Arabia – Tax Penalty Relief Extended Until 31 December 2026
Announced: 30 June 2026
What happened?
The Zakat, Tax and Customs Authority (ZATCA) recently announced a further extension of the initiative providing relief from certain tax penalties and fines for eligible taxpayers. The extension runs until 31 December 2026 and applies to a range of penalties including late registration, filing and payment penalties, subject to specified conditions.
Our view
While ZATCA have extended this initiative on multiple occasions now, businesses should not assume that further extensions will be granted. The programme continues to provide a valuable opportunity for taxpayers to review historic filing positions, identify any areas of non-compliance and regularise their affairs on favourable terms.
This is particularly important given the potentially significant penalties that can arise during a tax audit or assessment. Companies operating in Saudi Arabia should consider whether the amnesty can be used as part of a broader tax risk review and remediation exercise before the current relief period expires on 31 December 2026.
Source: zatca.gov.sa