GCC has among the lowest total tax rates: PwC

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The report Paying Taxes 2010: The Global Picture produced as part of the World Bank Group’s annual Doing Business project, said GCC states are favourable for investment and business activities as they have amongst the lowest TTRs with the easiest compliance requirements worldwide.

However, the report suggested the region needs further government reforms to maintain its leading position, and there was also a need for caution and planning for local companies investing overseas, as tax systems around the world can be more complex to deal with, in addition to multiple layers of taxation.

According to the report, among GCC states, Qatar ranked second in the world as a tax leader, followed by the UAE in fourth; Saudi Arabia seventh; Oman eighth; Kuwait 11th and Bahrain stood 13th.

Commenting on the GCC’s performance, PwC Middle East Tax Leader, Dean Rolfe, who is also one of the authors of the report, said: "It is encouraging to see the Middle East achieve these results, and clearly highlights the attractive tax regimes that are currently in place in many jurisdictions in the region.

The Paying Taxes 2010 project shows the GCC, and the Middle East more broadly, have competitive taxation systems that promote investment, business activity and economic growth."

He said these results help explain why places such as Dubai have become such popular locations for international organisations doing business in the Middle East.

 

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