2026 GCC business tax guide
Tax Types & Rates per Country within the GCC
Compare the current headline tax systems of the UAE, Saudi Arabia, Bahrain, Oman, Qatar and Kuwait—then use the practical explanations to understand what each rate means for a real business decision.
At-a-glance comparison
GCC tax rates by country
Standard and headline rules reviewed against official government sources on 29 July 2026. Select a country on smaller screens, or compare all six.
| Tax type | UAEFederal Tax Authority | Saudi ArabiaZATCA | BahrainNational Bureau for Revenue | OmanTax Authority | QatarGeneral Tax Authority | KuwaitMinistry of Finance |
|---|---|---|---|---|---|---|
| Corporate income tax | 0% / 9%0% to AED 375k; 9% above. Free-zone and exemption conditions apply. | 20%Foreign/non-Saudi share; 50–85% for oil and hydrocarbons. Zakat may apply to Saudi/GCC ownership. | 0% general46% oil and gas. A 10% tax targeted for 2027 remains a proposal, not a 2026 rate. | 15%3% for qualifying small enterprises; 55% for oil and gas. | 10%At least 35% for petroleum and petrochemical activities; ownership exemptions may apply. | 15%Applies to taxable net income of foreign incorporated bodies. |
| Global minimum tax / DMTT | 15%In-scope MNE groups with consolidated revenue of at least €750m; effective from 2025. | Not listedNo enacted domestic DMTT identified on ZATCA’s official portal as of the review date. | 15%In-scope MNE groups meeting the €750m revenue test; effective from 2025. | Not listedNo enacted domestic DMTT identified on the Tax Authority portal as of the review date. | 15%DMTT and income inclusion rule for in-scope MNEs; applies from 2025 fiscal years. | 15%Domestic minimum top-up tax for in-scope MNE groups; effective from 2025. |
| Capital gains | No separate taxTaxable business gains enter the corporate-tax base at 0%/9%; exemptions can apply. | Generally 20%For gains within the income-tax base; listed securities and restructuring rules can change treatment. | 0% generalNo general capital-gains tax outside specially taxed sectors or DMTT effects. | Included at 15%Part of taxable business income; gains on Muscat Stock Exchange listed securities are exempt. | 10%35% for oil/petrochemical assets; exemptions apply in specified cases. | Included at 15%For taxable foreign bodies; Kuwait exchange trading gains are exempt under the income-tax law. |
| Withholding tax | 0%The UAE corporate-tax withholding rate is currently zero. | 5–20%Depends on payment type; treaty relief may reduce the domestic rate. | 0% generalNo general withholding tax on cross-border payments. | 10%Generally on specified payments to non-residents; treaty and statutory conditions apply. | 5%Final withholding on specified payments to non-residents without a Qatar permanent establishment. | 0% WHTNot a final WHT, but a 5% payment retention can apply until tax clearance. |
| Value added tax (VAT) | 5%Standard rate; zero-rated and exempt supplies exist. | 15%Standard rate; zero-rate and exemption rules apply to selected supplies. | 10%Standard rate since 1 January 2022; zero-rated and exempt categories remain. | 5%Standard rate; selected supplies are zero-rated or exempt. | Not implementedNo domestic VAT rate is in force as of the review date. | Not implementedNo domestic VAT law or rate is in force as of the review date. |
| Excise tax | 100% + tiered100% tobacco, energy drinks and vaping goods; sweetened drinks AED 0 / 0.79 / 1.09 per litre. | 100% + tiered100% tobacco, energy and vaping goods; sweetened drinks SAR 0 / 0.79 / 1.09 per litre. | 50% / 100%50% carbonated soft drinks; 100% energy drinks and tobacco products. | 50% / 100%50% soft and sweetened drinks; 100% tobacco, energy and specified vaping goods. | 100% + tiered100% tobacco, energy and special goods; sweetened drinks QAR 0 / 0.77 / 1.06 per litre from 6 July 2026. | Not implementedNo domestic excise-tax law or rate is in force as of the review date. |
| Customs duties | Generally 5%Usually 5% of CIF value; exemptions and higher rates apply to selected goods. | HS-code basedMany goods use 5%, but integrated tariff rates vary and can be materially higher. | Generally 5%GCC tariff and product-specific exemptions or higher rates apply. | HS-code based5% is common, but the official tariff calculator must be checked for each product. | Generally 5%Product classification, origin and exemptions can change the duty. | Generally 5%Standard rate for many imports; exemptions and special rates apply. |
| Transfer pricing | AppliesArm’s-length rules cover domestic and cross-border related-party transactions. | AppliesArm’s-length rules and documentation requirements apply to controlled transactions. | Limited scopeDMTT and VAT valuation rules can apply; no broad non-oil corporate-tax TP regime. | Arm’s-length rulesRelated-party provisions apply; CbC reporting has a separate OMR 300m group threshold. | AppliesRelated-party rules, declaration and documentation requirements apply. | DMTT scopeGlobal-minimum-tax rules apply to in-scope MNEs; no broad standalone TP regime. |
| Personal income tax on salary | NoneNo federal personal income tax on employment salary. | NoneNo general personal income tax on employment salary. | NoneNo general personal income tax on employment salary. | 5% from 2028On taxable specified income where annual gross income exceeds OMR 42,000; not yet effective. | NoneSalaries, wages and allowances are outside the income-tax law. | NoneNo general personal income tax on employment salary. |
How to read this table: rates are headline planning figures, not quotes for a specific taxpayer or transaction. “Not listed” means no enacted domestic regime was identified on the authority portal at the review date. It does not predict future legislation.
Use the comparison well
What this GCC tax comparison can—and cannot—tell you
GCC tax systems have developed quickly. The region still has no single business-tax code: each member state enacts, administers and updates its own rules, even where the countries work from shared GCC agreements. That is why a company selling the same product in Dubai, Riyadh, Manama, Muscat, Doha and Kuwait City may face six different combinations of corporate tax, VAT, withholding, excise, customs and documentation.
The table is designed for an initial comparison. It answers questions such as “What is the standard VAT rate?”, “Is there a general withholding tax?” and “Has a domestic minimum top-up tax been enacted?” It does not calculate a tax return. A reliable calculation starts with the legal entity, ownership, residence, permanent establishments, source of income, customer location, product classification and any tax treaty or incentive.
Plain-language guide
GCC tax types explained with practical examples
Corporate income tax
Corporate income tax is charged on a business’s taxable profit, not simply on its sales or cash balance.
A UAE mainland company with AED 600,000 of taxable income would generally apply 0% to the first AED 375,000 and 9% to the remaining AED 225,000, before considering reliefs or adjustments. The simplified tax on that upper slice is AED 20,250.
Conditions to check: The headline rate is only the starting point. Ownership, free-zone status, permanent-establishment exposure, sector, deductions, losses, tax incentives and treaty protection may all change the final liability. Saudi Arabia also distinguishes the non-Saudi ownership share that falls under income tax from ownership that may fall under Zakat.
Global minimum tax and domestic minimum top-up tax
The OECD Pillar Two framework is designed to bring the effective tax rate of very large multinational groups to at least 15% in each relevant jurisdiction.
If an in-scope group’s covered profit in a GCC country produces a 10% effective rate after GloBE adjustments, a domestic top-up tax may collect the 5-percentage-point difference. This is not a simple 15% charge on accounting profit; the GloBE calculation has its own income, tax, substance and safe-harbour rules.
Conditions to check: The UAE, Bahrain, Qatar and Kuwait have enacted domestic minimum-tax rules for qualifying multinational groups, generally using the €750 million consolidated-revenue test. A small local company is not brought into Pillar Two merely because the table shows 15%. Cells marked “Not listed” reflect that no enacted domestic regime was identified on the named authority’s portal at the review date, not a prediction about future policy.
Capital gains tax
A capital gain is the profit made when an asset is sold for more than its tax basis or allowable cost.
If a business buys equipment for 100,000, has an adjusted tax basis of 70,000 and sells it for 90,000, the potential taxable gain is 20,000 before jurisdiction-specific rules. In Qatar, a taxable gain may generally face 10%; in the UAE or Oman, the gain may instead be included in the ordinary corporate-income calculation.
Conditions to check: Several GCC systems do not impose a separate capital-gains tax. That does not automatically make every gain tax-free: a gain can be included in corporate income. Listed-share exemptions, participation exemptions, reorganisations, ownership status and oil-sector rules can produce different results. For investment analysis, compare the pre-tax and after-tax result alongside a verified return calculation using the capital gains yield calculator.
Withholding tax
Withholding tax is deducted by the payer from certain cross-border payments and remitted to the tax authority for the non-resident recipient.
A Saudi company paying SAR 100,000 of royalties to a non-resident may start with the domestic 15% royalty withholding rate, producing SAR 15,000 of withholding. A tax treaty may reduce that amount if the recipient satisfies residence, beneficial-ownership and documentation conditions.
Conditions to check: Rates depend on the payment type. Saudi Arabia’s domestic schedule ranges from 5% to 20%, Oman generally applies 10% to specified non-resident payments, and Qatar generally applies 5%. The UAE rate is currently 0%. Kuwait’s 5% contract-payment retention is a security mechanism pending tax clearance, not a final withholding tax rate.
Value added tax
VAT is a transaction tax collected through the supply chain. Registered businesses charge output VAT and may recover eligible input VAT.
A Bahrain business selling a standard-rated service for BHD 1,000 would normally add 10% VAT, making the invoice total BHD 1,100. The business then offsets recoverable input VAT and pays the net amount through its VAT return.
Conditions to check: Standard rates are 5% in the UAE and Oman, 15% in Saudi Arabia and 10% in Bahrain. Qatar and Kuwait have not implemented domestic VAT as of the review date. Zero-rating, exemption, place-of-supply, reverse-charge and registration rules are different concepts and must not be treated as interchangeable. For a quick gross-to-net check, use the percentage calculator.
Excise tax
Excise tax targets selected goods, typically because of health or social-policy objectives, and is normally charged at import or production.
From 2026, a one-litre sweetened drink with 6 grams of total sugar and other sweeteners per 100 ml falls into the medium band in both the UAE and Saudi Arabia: AED 0.79 per litre in the UAE or SAR 0.79 per litre in Saudi Arabia. Qatar’s medium band is QAR 0.77 per litre from 6 July 2026.
Conditions to check: The rate is not one universal “50–100%” number anymore. Tobacco, energy drinks and vaping products can still face 100%, while sweetened drinks in the UAE, Saudi Arabia and Qatar use sugar-content bands. Bahrain and Oman currently retain percentage-based treatment for the beverage categories shown. Product definitions, retail selling price, concentrates, exemptions and transitional stock rules matter.
Customs duties
Customs duty is generally calculated when goods enter a country, based on classification, origin and customs value.
If goods enter the UAE with a CIF value of AED 80,000 and qualify for the general 5% duty, the customs duty is AED 4,000. Import VAT may then be calculated under separate rules on a base that can include customs duty.
Conditions to check: “Generally 5%” is not a safe quote for every shipment. Each authority’s tariff lookup must be checked using the correct Harmonized System code. Alcohol, tobacco, protected products and goods affected by trade-remedy or local-industry measures can carry higher rates; GCC-origin goods and goods under free-trade arrangements may qualify for relief if origin conditions are met.
Transfer pricing
Transfer-pricing rules require related companies to price controlled transactions as independent businesses would under comparable conditions.
If a UAE parent provides management services to a related Saudi subsidiary, both entities need support for the service, benefit received and arm’s-length charge. A cost allocation without evidence may be challenged even when an invoice exists.
Conditions to check: Transfer pricing is a rule framework, not a percentage tax rate. The UAE, Saudi Arabia and Qatar have explicit related-party regimes. Oman has arm’s-length provisions and country-by-country reporting rules. Bahrain and Kuwait have narrower exposures tied to VAT, sector rules or their minimum-tax frameworks. Documentation thresholds and filing forms are jurisdiction-specific.
Personal income tax
Personal income tax is a direct tax on an individual’s income. Most GCC states do not levy a general tax on employment salary.
An employee’s monthly wage in the UAE, Saudi Arabia, Bahrain, Qatar or Kuwait is not subject to a general personal salary tax under the systems summarized here. Mandatory social-insurance contributions can still reduce take-home pay and should not be confused with income tax.
Conditions to check: Oman has enacted a 5% personal income tax effective from the beginning of 2028 on specified taxable income where annual gross income exceeds OMR 42,000. It is not a 2026 payroll tax, and the threshold is not itself the taxable amount. Separate rules may apply to business activity, property, investment income, residency and social security.
Decision checklist
How to compare GCC locations for a business or investment
Start with the transaction rather than the country headline. A low corporate-tax rate may be less important than import duty, irrecoverable VAT, withholding on royalties or the cost of maintaining substance and records. Build an after-tax cash flow using realistic assumptions, then test a base case and downside case with the investment calculator.
- Map the entity and owners.Identify residence, legal form, foreign and GCC ownership, branches and permanent establishments.
- Map revenue and payments.Separate goods, services, royalties, interest, management fees, property and asset disposals.
- Check indirect tax.Test VAT registration, place of supply, reverse charge, zero-rating, exemptions and recoverability.
- Classify imported goods.Use the official HS-code tariff tool and verify origin documentation before quoting landed cost.
- Review related parties.Document benefit, pricing method, comparables and allocation keys before invoicing group charges.
- Model future rules carefully.Keep enacted future rules separate from proposals, announcements and market speculation.
Verification record
Official GCC tax sources used
Each country heading in the table opens its tax authority website. The links below point to the government pages, laws, guides and tariff tools used for the detailed rate checks.
UAE official sources
Saudi Arabia official sources
Bahrain official sources
Oman official sources
Qatar official sources
Common questions
GCC tax rates FAQ
Which GCC country has the lowest corporate tax rate?
There is no single answer without the business facts. Bahrain has a 0% general non-oil corporate-tax rate in 2026, but oil and gas profits are taxed and in-scope multinational groups can face a 15% DMTT. The UAE has 0% up to AED 375,000 of taxable income and 9% above, subject to special rules. Ownership, sector, free-zone status and Pillar Two can change the comparison.
What are the standard VAT rates in GCC countries in 2026?
The standard VAT rates are 5% in the UAE, 15% in Saudi Arabia, 10% in Bahrain and 5% in Oman. Qatar and Kuwait have not implemented domestic VAT as of 29 July 2026. Zero-rated, exempt and out-of-scope supplies require separate analysis.
Does the UAE charge withholding tax?
The UAE corporate-tax withholding rate is currently 0%. Reporting, transfer-pricing, permanent-establishment and treaty considerations may still apply to a cross-border payment.
Is Bahrain’s proposed 10% corporate tax already in force?
No. Bahrain’s National Bureau for Revenue described it as a draft measure targeted for 2027, subject to the legislative process. It should not be shown as a current 2026 general corporate-tax rate.
Do Qatar and Kuwait have VAT?
No domestic VAT is in force in Qatar or Kuwait as of the review date. The GCC VAT framework does not by itself create a collectible domestic VAT without local implementation.
When does Oman’s personal income tax begin?
Oman’s Personal Income Tax Law is scheduled to take effect at the beginning of 2028. The enacted rate is 5% on specified taxable income for an individual whose annual gross income exceeds OMR 42,000, subject to the law’s deductions, exemptions and detailed conditions.
Are customs duties always 5% in GCC countries?
No. A 5% rate is common, but customs duty depends on the HS code, origin, valuation, exemptions and trade measures. Some goods are duty-free while alcohol, tobacco and protected products may face higher rates. Always check the destination country’s official tariff tool.
Who is affected by the 15% GCC global minimum tax?
It generally targets constituent entities of multinational groups whose consolidated revenue reaches at least €750 million in two of the previous four fiscal years, subject to each country’s enacted rules, exclusions, safe harbours and GloBE calculations. It is not a general 15% tax on every local business.
Why can an actual tax bill differ from this comparison table?
Taxable income is not the same as accounting profit or revenue. Deductions, exemptions, losses, ownership, treaties, free zones, permanent establishments, related-party pricing, registration thresholds and sector-specific rules can all change the result. The table is a planning overview, not a substitute for transaction-specific advice.