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Lexis Middle East Gulf Tax – Summer 2025 Edition News developments

Lexis Middle East Gulf Tax – Summer 2025 Edition

  • 16/06/202519/06/2025
  • by Tanya Jain

Brought to You by Tolley+ Middle East

The Summer 2025 Edition of Lexis Middle East Gulf Tax brings readers a sharp and timely exploration of evolving tax regulations and practices across the GCC region. This issue is rich with expert insights, legislative updates, and practical guidance for tax professionals navigating an increasingly complex landscape.


FEATURE: WITHHOLDING TAX: YOU NEED TO KNOW

Shiraz Khan and Richard Ferrand from Al Tamimi & Co. delve into Saudi Arabia’s evolving position on Withholding Tax (WHT). The article explains the latest ZATCA (Zakat, Tax and Customs Authority) clarifications surrounding WHT benefits and how entities can apply for these incentives. It is an essential read for taxpayers and advisors managing cross-border payments and seeking certainty in compliance.


FEATURE: ADVANCES IN TRANSFER PRICING

Zain Satardien and Aakriti Sharma of Hourani and Partners provide an authoritative overview of recent ZATCA developments regarding Advance Pricing Agreements (APAs). Their analysis highlights how Saudi tax authorities are refining their transfer pricing approach to offer greater predictability for multinational enterprises operating in the Kingdom.


TAX NEWS ROUND-UP

A comprehensive digest of reent tax treaty updates and regulatory shifts across the Gulf. This section is a must-read for professionals seeking to stay abreast of strategic tax changes and how they may affect operations across multiple jurisdictions.


PRACTICAL FOCUS: FOCUS ON NATURAL RESOURCES

This piece by Baqar Palavandishvili of Galadari Advocates & Legal Consultants examines the implications of Sharjah Law No. 3/2025, a landmark reform introducing a corporate tax regime for extractive and non-extractive natural resource companies. The article breaks down the scope, compliance expectations, and what it means for businesses involved in energy and resource sectors.


TAX PROFESSIONAL PROFILE: TAKING A MORE FLEXIBLE APPROACH

In a candid interview, Illyana Panova, Global Tax Director for a Family Office, reflects on her experience as the first UAE-based tax expert to join the fractional executive community. She shares insights on adopting a flexible work model, lessons learned from leading global tax strategies, and how the regional tax landscape is evolving to accommodate non-traditional executive roles.


ANY QUESTIONS? WHAT’S DUBAI EXECUTIVE COUNCIL DECISION NO. 11/2025’S TAX IMPACT?

Andre Anthony and Adelina Frunza of CMS explore the tax implications of this new Dubai freezone regulation. Their article dissects the operational and strategic impact of Decision No. 11/2025 on freezone entities, offering clarity on potential challenges and planning opportunities for affected businesses.


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Lexis Middle East Gulf Tax_Summer 2025

Have you read the Lexis® Middle East Gulf Tax – Past editions? Click the links below to access them.

Lexis Middle East Gulf Tax | Spring 2025

Lexis Middle East Gulf Tax | Autumn 2024

Lexis Middle East Gulf Tax | Summer 2024

Lexis Middle East Gulf Tax | Summer 2024

Saudi Arabia: Law Amendment to Regulate Private Security Guard Services News developments

Saudi Arabia: Law Amendment to Regulate Private Security Guard Services

  • 22/05/202522/05/2025
  • by Tanya Jain

Saudi Gazette, 17 May 2025: The Saudi Interior Ministry has issued amendments to the Executive Regulations of Saudi Arabia Cabinet Decision No. 145/1426 on Private Security Services, which were approved by Interior Minister.

These amendments delineate the activities that private security guards can perform during work hours and establish requirements for 24-hour security services for specific commercial establishments.

The decision impacts private security service providers and the facilities they serve, including private and international educational institutions, event halls, medical centres, and facilities licensed by the Saudi Conventions and Exhibitions General Authority or the General Entertainment Authority. These facilities are required to provide private civilian security services during work hours.

The amended regulations mandate 24-hour security for establishments such as hotels, banks, hospitals, gold and jewellery stores, large markets, malls, and commercial centres with significant retail space. Other facilities, including car showrooms, residential complexes, amusement parks, and factories, are also obliged to provide round-the-clock security based on specific criteria outlined in the amendments.

The amendments aim to enhance the security framework within the Kingdom, ensuring private security services are effectively regulated and establishments maintain adequate protection measures.

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Saudi Arabia: Amends GCC Customs Tariff Schedule to Revise Duties on Select Products News developments

Saudi Arabia: Amends GCC Customs Tariff Schedule to Revise Duties on Select Products

  • 21/05/202521/05/2025
  • by Tanya Jain

Saudi Gazette, 17 May 2025: The Saudi Ministry of Finance approved several amendments to the Integrated Customs Tariff Schedule for the Gulf Cooperation Council (GCC) states.

These amendments are set to take effect on 6 October 2025 and involve the imposition of revised duties on certain product categories, impacting importers and businesses dealing with products such as natural honey and chemical compounds. The revised tariff schedule includes a 5 percent customs duty on natural honey, including Manuka honey and other types, whether filtered or containing wax pieces. Additionally, a 2 percent duty was imposed on various chemicals, including acetophenone and benzophenone, while a 52 percent duty was applied to compounds like methyl naphthyl ketone.

The amendments also addressed the description and labeling of goods, correcting formal errors in the tariff schedules. Notably, a 5 percent duty was introduced for fresh fatty livers, and several types of frozen fish were renamed with a unified duty rate of 5 percent. Furthermore, Indian betel leaf was included in the customs tariff, while the import of khat was explicitly prohibited under the “other plants” section.

These legal changes align the tariff schedule with the decisions of the GCC countries, ensuring consistency and compliance across member states.

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Saudi Arabia: New Labour Regulations Banning Personal Freedom Questions in Job Interviews News developments

Saudi Arabia: New Labour Regulations Banning Personal Freedom Questions in Job Interviews

  • 15/05/202515/05/2025
  • by Hannah Gutang

Gulf News, 9 May 2025: The Saudi Ministry of Human Resources has issued new labour regulations prohibiting questions related to personal freedoms during job interviews.

This is part of Saudi Arabia’s ongoing efforts to regulate its labour market and ensure fair employment practices, particularly for its large expatriate community.

The decision impacts employers and job applicants across Saudi Arabia, mandating that job interviews and announcements to be free from discrimination based on gender, disability, age, and marital status. Interviewers are also prohibited from asking about an applicant’s previous workplace confidentialities, ensuring privacy and respect for personal boundaries.

Employers are obligated to inform job applicants of interview details at least three working days in advance, whether the interview is in-person or remote. The interview venue must comply with health and safety regulations, providing adequate seating, visible entrances and exits, and gender-specific restrooms. Security measures, such as electronic systems or security guards, must also be in place.

Additionally, job vacancy announcements must align with the Saudi Unified Occupational Classification and be posted on official digital platforms or licensed employment fairs. These announcements must include comprehensive details such as the company name, activity, office location, job description, required qualifications, work hours, benefits, and application procedures.

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Saudi Arabia: Directory for Occupational Safety and Health Standards News developments

Saudi Arabia: Directory for Occupational Safety and Health Standards

  • 08/05/202508/05/2025
  • by Tanya Jain

Saudi Gazette, 4 May 2025: The Saudi General Organisation for Social Insurance (GOSI) has launched a comprehensive directory for occupational safety and health standards.

This initiative, unveiled at the Global Occupational Safety and Health Conference 2025 in Riyadh, impacts specialists, establishments, and relevant entities across the Kingdom, providing a unified reference to enhance workplace safety and health standards.

The directory, developed based on international best practices, will provide guidance for employers, workers, and inspectors, offering clear preventive standards to mitigate workplace injuries and occupational hazards. It covers over 4,500 standards across six main sectors: public industries, construction, agriculture, maritime activities, transport, and mining. Additionally, there is a detailed classification of more than 70 sectors aligned with the national directory of economic activities.

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Saudi Arabia: Enforces Executive Regulations of Investment Law News developments

Saudi Arabia: Enforces Executive Regulations of Investment Law

  • 01/05/202501/05/2025
  • by Tanya Jain

Eye Of Riyadh, 27 April 2025: The Saudi Minister of Investment has approved the executive regulations for the Investment Law (Saudi Arabia Cabinet Decision No. 40/1446)

The regulations aim to enforce the provisions of the Investment Law and achieve its goals, focusing on equal treatment and non-discriminatory practices for both local and foreign investors under similar circumstances.

Article 3 of the Executive Regulations will entitle investors to equal treatment and non-discriminatory practices, ensuring fairness between local and foreign investors. The ministry will retains the right to regulate in accordance with local laws and regulations, prioritising public interest, including national security, public safety, and public order.

Article 7 of the Investment Law Executive Regulations, will grant investors the right to freely transfer funds related to their investments to and from Saudi Arabia. These transfers include initial capital, profits, capital gains, dividends, royalties, fees, loan repayments, proceeds from liquidation or partial sale of investments, and earnings of employees contracted abroad. However, these provisions do not apply to measures taken by competent authorities involving financial services for justified reasons, such as protecting investors, depositors, and policyholders, or ensuring the stability of the financial system

The ministry also has to notify foreign investors in writing when procedures which relate to national security have been initiated, unless circumstances dictate otherwise. It will also have the right to request information or documents deemed important for assessing the impact of foreign investment on national security. Foreign investors will have the right to express their views and submit relevant information during these procedures. The ministry may also engage in discussions with foreign investors to explore alternative measures to mitigate national security risks.

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Saudi Arabia: New Penalties on Elderly Care Law News developments

Saudi Arabia: New Penalties on Elderly Care Law

  • 24/04/202524/04/2025
  • by Hannah Gutang

Gulf News, 22 April 2025: Saudi Arabia’s Ministry of Human Resources and Social Development has introduced new regulations to improve labour inspections.

Under the updated framework, companies found in violation of labour rules will receive an electronic warning and must resolve the issue within three working days. Failure to comply results in a formal report and penalties, as per the ministry’s schedule of violations. Employers must submit relevant information about the violation via the ministry’s official email within the same period, with non-compliance leading to legal action.

The regulations enable inspectors to examine machinery, facilities, and safety protocols to verify occupational health measures. Inspectors must be Saudi nationals with a university degree or two years of relevant experience, along with specialist training. They are required to sign a confidentiality agreement and cannot be reassigned or dismissed without approval from the deputy minister or an authorised official.

Inspectors must carry official ministry-issued ID and present it during site visits, which can occur during any working hours, even in the employer’s absence. While prior notice is typically required, urgent circumstances may justify unannounced visits. Authorities will be permitted to access and copy both electronic and physical company records to verify compliance, ensuring inspections respect the rights of both employers and workers. Violations are recorded only after confirmation and formal notification, with employers given an opportunity to respond before any action is finalised.

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Saudi Arabia: New Penalties on Elderly Care Law News developments

Saudi Arabia: New Penalties on Elderly Care Law

  • 17/04/202517/04/2025
  • by Hannah Gutang

Gulf News, 11 April 2025: New penalties are being introduced to enforce the Elderly Rights and Care Law, Saudi Arabia Cabinet Decision No. 292/1443.

Executive regulations have been issued to enforce the Elderly Rights and Care Law, Thee introduce severe penalties for neglect and abuse, including up to one year in prison and a fine of SR500,000. Both government and non-government entities must provide comprehensive care, ensuring safe and accessible environments for the elderly and promote their active participation in society.

The executive regulations emphasise the dignity and inclusion of elderly individuals, recognising their right to respect as a fundamental duty. The law also provides a dedicated identification card for the elderly, which grants them priority access to services and reduces bureaucratic hurdles.

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Saudi Arabia: New Commercial Registry and Trade Names Systems Implemented News developments

Saudi Arabia: New Commercial Registry and Trade Names Systems Implemented

  • 10/04/202510/04/2025
  • by Hannah Gutang

Saudi Pulse News, 3 April 2025: The Saudi Ministry of Commerce has implemented new systems for commercial registry and trade names.

The Saudi Ministry of Commerce has announced new systems for commercial registry and trade names that are now in force, along with the relevant executive regulations, from 3 April 2025. The new commercial registry system covered by Saudi Arabia Cabinet Decision No. 237/1446 will simplify business operations by consolidating all activities under a single national registry, eliminating the need for separate sub-registries for individual enterprises and companies. This change is expected to reduce financial burdens on businesses.

The system has introduced an annual electronic confirmation requirement for registry data, replacing the previous practice of renewing the registry. Traders must confirm their registry data every 12 months from the issue date. Failure to provide this confirmation within 90 days of its due date will result in the suspension of the registry and associated services, with automatic deletion after one year if not rectified. Businesses must also open bank accounts linked to their commercial entities to enhance reliability.

The trade names system and its executive regulations aim to bolster trust by regulating the reservation and registration of trade names, ensuring their protection and associated rights. The system allows trade names to be reserved for a specified period, which is extendable once, under certain conditions, and prohibits the registration of names which are similar to existing ones, even if the business activities differ.

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Saudi Arabia: Reforms to Stabilise Riyadh Housing Market News developments

Saudi Arabia: Reforms to Stabilise Riyadh Housing Market

  • 03/04/202503/04/2025
  • by Hannah Gutang

Gulf News, 2 April 2025: The Saudi government has implemented a series of reforms to address the rising costs of housing in Riyadh.

The reforms are designed to stabilise land values and rental rates, making housing more accessible to residents. A decision has been issued by the Saudi authorities, impacting property developers, landlords, and tenants in the region. The reforms include measures to regulate land prices, control rental increases, and incentivise affordable housing projects. The reforms are expected to have a significant impact on the housing market by curbing speculative practices and ensuring fair pricing.

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