Welcome to the December 2025 edition of our Newsletter Tax Roundup. As we march into the year 2026 with renewed personal and professional goals and resolutions, it is equally significant to stay updated of the new tax regulations in the evolving tax landscape of the UAE and other regional countries.
This month features significant digital transformation milestones in the UAE, the conclusion of major penalty amnesties in Qatar, and final-wave e-invoicing compliance deadlines in Saudi Arabia.
United Arab Emirates
Digital Shift: Scrapping of Paper Tax Registration Certificates
The Federal Tax Authority (FTA) announced on December 30, 2025, that it will officially stop issuing paper tax registration certificates effective January 1, 2026. Under Cabinet Decision No. 174 of 2025, the UAE is moving toward a fully digital system. Businesses will now receive free electronic certificates equipped with QR codes for instant verification, aimed at reducing administrative costs and processing times.
New Tiered-Volumetric Excise Tax on Sweetened Drinks
The FTA confirmed on December 29, 2025, the implementation of a new “Tiered-Volumetric Model“ for excise tax on sweetened drinks, effective January 1, 2026. This replaces the previous fixed-rate system. The new mechanism links the tax amount per liter to the total sugar/sweetener content per 100ml. Producers and importers must now use the EmaraTax platform to register products under this new mechanism.
New Administrative Penalties for E-Invoicing Violations
On December 9, 2025, the Ministry of Finance published Cabinet Decision No. 106 of 2025. This decision outlines specific administrative penalties for violations of the legislation regulating the national e-invoicing system. This move is part of the final preparations for the UAE’s broader e-invoicing rollout scheduled for 2026.
Tax Compliance for Qualifying Investment Funds
The FTA issued Decision No. 8 of 2025, clarifying timelines for tax compliance requirements for Qualifying Investment Funds and their investors.
Reverse Charge Mechanism on Scrap Metal
Cabinet Decision No. 153 of 2025 introduces the mandatory application of the Reverse Charge Mechanism (RCM) on local supplies of scrap metal between VAT-registered persons. The recipient is now responsible for accounting for the VAT, subject to certain conditions, aimed at reducing fraud in the sector.
Kingdom of Saudi Arabia
Deadline for 22nd Wave of Phase 2 E-Invoicing Integration
The Zakat, Tax and Customs Authority (ZATCA) reminded taxpayers that the 22nd wave of Phase 2 e-invoicing integration must be completed by December 31, 2025. This wave targets resident taxpayers with a taxable turnover exceeding SAR 1 million during 2022, 2023, or 2024.
Withholding Tax (WHT) Submission Deadline
ZATCA urged all establishments subject to Withholding Tax to submit their monthly forms for November 2025 no later than December 10, 2025. Failure to submit through the official portal (zatca.gov.sa) results in a penalty of 1% for every 30 days of delay.
Zakat and Tax Compliance Workshops
In mid-December, ZATCA conducted a series of virtual workshops focusing on “Zakat Payers’ Rights and Obligations” and a dedicated session on the “Cancellation of Fines and Exemption of Penalties Initiative” to assist businesses in settling outstanding liabilities before year-end.
Oman
Launch of “Fieldwork Week” for Tax Compliance
On December 18, 2025, the Oman Tax Authority launched “Fieldwork Week.” This initiative involves intensive visits across various governorates to enhance tax culture, verify compliance with VAT and Excise Tax regulations, and provide direct support to taxpayers regarding their filing obligations.
Participation in International E-Invoicing Summit
The Sultanate of Oman participated in the 2025 E-Invoicing Exchange Summit in Singapore on December 11, 2025. The participation highlights Oman’s progress in developing its national e-invoicing framework, which is expected to see phased implementation starting in 2026.
Qatar
Launch of Five-Year Strategic Plan (2025-2029)
On December 1, 2025, the General Tax Authority (GTA) officially launched its new five-year strategy. The roadmap focuses on digital transformation, enhancing taxpayer services through simplified procedures, and establishing the GTA as a national hub for financial and economic data.
Activation of “Tabadol” Portal for CbCR
The GTA announced the opening of the “Tabadol” Portal on December 10, 2025. This platform is dedicated to Country-by-Country Reporting (CbCR), allowing multinational enterprises (MNEs) to fulfill their international tax transparency obligations in line with OECD standards.
Final Deadline for 100% Financial Penalty Exemption
Taxpayers in Qatar had until December 31, 2025, to benefit from the 100% financial penalty exemption initiative. The GTA confirmed that this is the final extension for regularizing tax affairs related to late registration, filing, and payment for previous tax years.
Bahrain
“Musanada” Interactive VAT Sessions for SMEs
The National Bureau for Revenue (NBR) held an interactive session on December 9, 2025, as part of the “Musanada” initiative. The session focused on helping Small and Medium Enterprises (SMEs) understand VAT registration updates, the process for amending estimated returns, and settling dues.
Updates to VAT Technical Guides
On December 14, 2025, the NBR released updated versions of several VAT technical guides. These updates provide further clarity on core functions versus income-generating activities and aim to simplify compliance for specific sectors as the 10% VAT rate enters its fourth year of implementation.
Kuwait
MNEs Group Tax Law Developments
Following the issuance of Executive Regulations for Law No. 157 of 2024 earlier in the year, the Ministry of Finance continued its year-end review of the 15% Domestic Minimum Top-Up Tax (DMTT) for large multinational enterprises. While the primary registration period concluded in September, December 2025 focused on finalizing compliance checks for MNEs whose first tax period begins on January 1, 2026.
The information provided in this newsletter is for general informational purposes only and does not constitute legal, financial, or tax advice. While every effort has been made to ensure the accuracy of the content based on official sources as of December 31, 2025, tax laws and regulations in the UAE and GCC are subject to frequent changes.
Readers are strongly advised to consult with a qualified tax professional or legal advisor before making any business decisions or taking action based on the information contained herein. We assume no liability for any errors, omissions, or any losses incurred from the use of this information.
