Corporate Income Tax and Other GCC Nations
The Gulf Cooperation Council (GCC) has six nations. These are the United Arab Emirates (UAE), Saudi Arabia, Bahrain, Kuwait, Qatar, and Oman. Each country sits in a unique position with its business laws. Their location, strong economies, and oil resources make them special. Investors choose GCC countries for good reasons. Most of these places have low taxes, but rules are changing fast.
In the last years, GCC countries have started to bring in more taxes. They want to earn money in new ways. They also want to depend less on oil and gas for their income. Businesses must now understand tax rules before they invest or set up in the GCC. It’s important to stay up-to-date so you can avoid problems.
Overview of Corporate Tax in GCC Nations
Business owners face many challenges in the GCC. Corporate tax rules are different in every country. You must know the law before you start a business in each nation.
Let’s look at the main corporate tax rates for every GCC country:
Corporate Tax in the UAE
The UAE has new corporate tax rules. The Ministry of Finance introduced corporate tax from June 1, 2023. The UAE uses the lowest rate in the region. This attracts investors from around the world. Companies in UAE free zones may pay 0% tax if their income stays below the threshold.
- 0% tax for taxable income up to AED 375,000
- 9% tax for taxable income over AED 375,000
The law makes the UAE a business-friendly country. Many international firms choose the UAE for this reason.
Corporate Tax in Bahrain
Bahrain has special tax rules. Most companies do not pay any corporate tax. Only oil, gas, or hydrocarbon businesses pay tax.
- 46% tax for oil, gas, and hydrocarbon firms
- 0% tax for all other businesses
No tax on sales, transfers, capital gains, or estates. This open policy draws foreign investors to Bahrain.
Corporate Tax in Kuwait
Kuwait applies the same tax rate to every business. All companies, whether local or foreign, must pay tax if they do business in Kuwait.
- 15% tax on net profits for all businesses
This rule means every company gets treated the same way. You must register your business and file taxes if you work in Kuwait.
Corporate Tax in Oman
Oman sets a flat tax rate for most companies. Only small Omani businesses and some LLCs get special lower rates.
- 15% tax on net profits for most businesses
- Before 2017, the tax was 12%, but now it’s 15% for many companies
Oman raised the rate to get more revenue. Make sure to check if your company fits any special rules.
Corporate Tax in Qatar
Qatar’s business tax is simple. Most firms pay a flat rate, but oil and gas businesses pay more.
- 10% tax on net profits for most businesses
- 35% tax for foreign oil and gas firms
Qatar wants to encourage growth in other sectors. This rule helps companies plan their taxes better.
Corporate Tax in Saudi Arabia (KSA)
Saudi Arabia has different tax rates for different companies. Local companies and foreign companies with a “permanent establishment” pay tax.
- 20% tax for resident capital companies and foreign branches
- 50%–85% tax for oil and gas companies
Saudi Arabia is strict about tax. You must follow local rules and report your business profits correctly.
Key Points for Business Owners in GCC
- Each GCC country sets its own tax rates and rules.
- Many countries give special treatment to oil and gas companies.
- UAE and Bahrain have the lowest or zero tax for most companies.
- Every company must file tax returns and keep records in each country.
- Knowing the law helps you save money and avoid fines.
Bullet Points: Quick GCC Tax Facts
- UAE: 0% below AED 375,000, 9% above
- Bahrain: 46% only for oil/gas, 0% for others
- Kuwait: 15% for all companies
- Oman: 15% for most businesses
- Qatar: 10% for most, 35% for oil/gas
- Saudi Arabia: 20% for most, up to 85% for oil/gas
How MAK Auditing Can Help Your Business
Mubarak Al Ketbi (MAK) Auditing knows all about tax rules in the GCC. Our experts help you register, plan, and file taxes in each country. We keep your business in line with the law. We save you time and protect you from mistakes. If you want to stay ahead of the game, don’t let the grass grow under your feet—contact MAK Auditing today!
- For more information, visit our office:
- Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp: +971 50 276 2132
