VAT among several tax changes facing Gulf

The arrival of value-added tax (VAT) in the Gulf countries, scheduled for the start of 2018, is only one of several tax-related regulatory changes to prepare for, says a consultant.

The Gulf countries will also be affected by an initiative from the Organisation for Economic Cooperation and Development to tackle base erosion and profit shifting (BEPS), by which multinational companies avoid tax.

Meanwhile, in Saudi Arabia, an online portal called ERAD will change the way citizens pay zakat, the charitable donations required by Islam.

“BEPS, zakat regulations and the introduction of ERAD are all game changers as the economies are adapting to the reality of [the] fall in oil prices,” said Nauman Ahmed, partner and Middle East tax leader at Deloitte.

“It is now more important than ever that businesses operating in Saudi Arabia understand the impact the changing global landscape of taxation would have on future operations as they need to plan ahead to maintain their profitability,” he added.

©2017 funds global mena

Related Articles