GCC Tax Update Q1 2026
GCC Tax Update Q1 2026
About the update
BDO's quarterly GCC Tax Update brings together the key regulatory changes, legislative progress, and enforcement signals from all six member states — compiled by our in-country specialists who advise businesses operating across the region every day.
Tax regulations across the Gulf Cooperation Council are evolving at pace — and Q1 2026 has delivered meaningful developments that every regional business should know about.
Key Q1 2026 tax updates in Kuwait
- Kuwait–Jordan tax treaty protocol published (15 March 2026), introducing key OECD BEPS measures aimed at preventing tax evasion and treaty abuse
- Scope of covered taxes updated, with Kuwait’s Domestic Minimum Top‑Up Tax now included and Zakat removed from treaty coverage
- New article on technical and consulting services, allowing source‑state taxation of fees at rates of up to 20%, subject to defined conditions
- Principal Purpose Test (PPT) introduced, denying treaty benefits where ob-taining the benefit is determined to be a main purpose of an arrangement or transaction
- Enhanced exchange of information provisions adopted to strengthen trans-parency and cross‑border cooperation
- Kuwait–Qatar tax treaty ratified and published by Qatar, with entry into force pending the exchange of ratification instruments between both countries.