Corporate Tax Across the GCC: Which Countries Actually Tax Businesses?
"The Gulf has no corporate tax" hasn't been true anywhere in the GCC for years — but exactly how each country taxes businesses varies enormously, often depending entirely on who owns the company.
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The rates, side by side
| Country | Standard rate | Key nuance |
|---|---|---|
| UAE | 9% | 0% up to AED 375,000 profit; free zones may qualify for 0% |
| Saudi Arabia | 20% or 2.5% Zakat | Foreign-owned share pays tax; Saudi/GCC-owned share pays Zakat instead |
| Qatar | 10% | Only on the foreign-owned share; Qatari/GCC share exempt |
| Oman | 15% (3% for small taxpayers) | Applies broadly regardless of ownership |
| Kuwait | 15% | Foreign corporate bodies only; Kuwaiti/GCC-owned generally exempt |
| Bahrain | 0% (46% for hydrocarbons) | No general corporate tax outside the oil & gas sector |
Ownership structure changes everything in three countries
Saudi Arabia, Qatar and Kuwait all tax companies differently depending on the nationality of ownership — a joint venture's tax bill can shift substantially depending on the exact equity split between local/GCC and foreign shareholders. This makes ownership structure a genuine tax-planning lever in these three countries, not just a legal formality.
Bahrain remains the outlier
Bahrain still has no general corporate income tax outside the oil and gas sector — making it structurally the lowest-tax jurisdiction in the GCC for most ordinary businesses, at least until that changes.
Frequently asked questions
Is the UAE's 9% the highest corporate tax rate in the GCC?
Does VAT registration relate to corporate tax registration?
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