Withholding Tax (WHT) Advisory Services

Withholding tax (WHT) is the tax deducted at source on certain cross-border payments — applied by a business when making specific types of payments to a person or entity outside the country. It typically applies to interest, dividends, royalties, and fees for technical or professional services paid to non-residents.

In the GCC, withholding tax is not applicable in the UAE and Bahrain. However, it is applicable in Kuwait, Oman, Qatar, and Saudi Arabia — and businesses operating across the region must track these obligations carefully to avoid penalties, payment delays, and compliance issues with local tax authorities.

MBG Corporate Services advises businesses on withholding tax obligations across the GCC, including treaty relief, compliance documentation, and cross-border payment structuring.

Withholding Tax Rates Across The GCC

WHT rates and the categories of payments they apply to vary significantly by country. Here is the current breakdown:

Withholding Tax Relief Under Double Tax Treaties

Businesses making cross-border payments from the UAE can often reduce or eliminate withholding tax exposure in the recipient’s country by relying on a Double Tax Treaty (DTT) between the UAE and that jurisdiction. The UAE has an extensive DTT network, and correctly applying treaty relief requires accurate documentation, including tax residency certificates and beneficial ownership confirmation.

Why This Matters For Your Business ?

How MBG’s Withholding Tax Advisory Helps ?

MBG Corporate Services supports businesses operating across the UAE and the wider GCC in identifying WHT exposure, applying treaty relief where available, and ensuring cross-border payments are structured and documented correctly.

Our Withholding Tax Advisory Services Include

Operating across the GCC and unsure where withholding tax applies to your payments? Speak to our tax advisory team for a clear assessment of your exposure and available treaty relief.