Guide · updated August 2026
Corporate tax across the GCC: where the UAE actually stands
Choosing where to base a Gulf business? Headline rates only tell half the story — who the tax applies to matters more. Here's the 2026 picture.
| Country | Headline rate | Who it applies to |
|---|---|---|
| UAE | 0% / 9% | All businesses; 0% band to AED 375K, free zone 0% on qualifying income |
| Saudi Arabia | 20% + zakat | 20% income tax on foreign ownership share; 2.5% zakat on Saudi/GCC share |
| Qatar | 10% | Foreign-owned share of profits; GCC-owned businesses largely exempt |
| Kuwait | 15% | Foreign companies only (domestic reform in progress) |
| Bahrain | 0% (15% DMTT) | No general corporate tax; 15% minimum tax on large multinationals from 2025 |
| Oman | 15% | All companies; 3% for qualifying small businesses; personal income tax arriving 2028 |
Three takeaways
- The UAE remains the lowest broad-based regime in the GCC for a locally-owned SME: nothing until AED 375K profit, then 9% — and possibly 0% in a free zone. Run your number in the calculator.
- Saudi Arabia's 20% is really a dual system — income tax on foreign shareholding, zakat on Saudi shareholding — so effective cost depends entirely on your cap table.
- The 15% floor is coming everywhere for giants: UAE, Bahrain, Qatar, Kuwait and Oman have all enacted or announced Pillar Two top-up taxes for €750M+ multinational groups. For SMEs, nothing changes.
Relocating a business between GCC states involves far more than tax rates — substance rules, ownership restrictions and VAT registration all shift. Treat this table as the starting point, not the decision.
Rates summarised from national tax authority publications as at August 2026. General information, not advice.
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