GET A QUOTE

Paying Taxes in GCC Countries Are More Easier than Advanced Countries

16/01/2020

According to the latest report on paying Taxes 2020, released by World Bank and Price Waterhouse Coopers on Tuesday, paying taxes in Bahrain is easiest globally followed by Hong Kong, Qatar, Ireland, Mauritius, Kuwait, Singapore, Denmark, New Zealand, and Finland making up the top 10 rankings. While Oman is ranked 11th, the UAE stands at 30th and Saudi Arabia at 57th.
The Gulf Cooperation Council (GCC) states offer a more conducive environment to pay taxes as compared to most of the countries around the world where the taxation regime exists for a long time.
The GCC region is relatively new to the taxes regime as governments have recently introduced value-added tax (VAT) and excise taxes on unhealthy items such as tobacco, sugar, and carbonated drinks. Moreover, taxes in the GCC are also among the least globally.
Data shows that it is still easier to pay taxes in the UAE than in advanced countries with a long experience in taxation. There have been changes in the ranking for the UAE due to the introduction of VAT in January 2018 and related compliance requirements introduced for businesses registered for VAT.
The difference in the time to comply between Saudi Arabia and the UAE could be a result of several factors. For example, the VAT regime in the UAE has some specific complexities as more supplies are zero-rated, there are more exemptions, and special schemes such as designated zones have been introduced.