World Tax - Home
The comprehensive guide to the world's leading tax firms

Gulf Cooperation Council

Market overview Printer-friendly version

Bahrain: tax authorities

Ministry of Finance
Building 100, Road 1702, Block 317, P.O Box 333, Diplomatic Area Manama, Kingdom of Bahrain
Tel: +973 1757 5000
Fax: +973 1753 2853
Email - Corporate Tax Directorate: nawaf@mof.gov.bh (Nawaf Sayed Hashim AL-Sadeh)
Email - VAT Directorate: alik@mof.gov.bh (Ali Khalil Hashim)
Website: www.mof.gov.bh

Bahrain: tax rates at a glance

(As of September 2012)

Corporate income 46% (a)
Capital gains 0%
Branch tax 0%
Withholding tax
Dividends 0%
Interest 0%
Royalties 0%
Technical service fees 0%
Branch remittance tax 0%
Net operating losses
Carryback 0
Carryforward Indefinitely
  1. There is no corporate tax for most companies in Bahrain, but income tax is levied on the profits of oil companies at a rate of 46%.

Kuwait: tax authorities

Ministry of Finance
Ministries Complex, City of Kuwait, 13001
Postal Address: PO Box 9, Safat

General
Tel: +965 248 0000
Email: webmaster@mof.gov.kw
Website: www.mof.gov.kw

Minister
Tel: +965 248 0000
Email: minister@mof.gov.kw

Undersecretary of MOF
Tel: +965 248 1006
Email: aassousi@mof.gov.kw

Kuwait: tax rates at a glance

(As of September 2012)

Corporate income 15%
Capital gains 15%
Branch tax 14%
Withholding tax
Dividends 15% (a)
Interest 0%
Royalties 0%
Technical service fees 0%
Branch remittance tax 0%
Net operating losses
Carryback 0
Carryforward 3 years (b)
  1. Dividends paid by investment fund managers or investment trustees to foreign companies are subject to a 15% tax, which must be withheld at source and forwarded to the Kuwait tax department as an advance payment of tax due on such dividends.
  2. The carryforward losses will not be permitted if (1) the entity ceases its activities in Kuwait (unless the cessation is mandatory); (2) the tax return indicates that there is no revenue arising from the company’s main activities; (3) the corporate entity is liquidated; (4) the legal status of the corporate body is changed; (5) the corporate body has merged with another corporate body

Oman: tax authorities

Ministry of Finance
PO Box 506, Muscat, Oman
Tel: +968 2473 8201
Fax: +968 2329 5888
Email: info@mof.gov.om
Website: www.mof.gov.om

Oman: tax rates at a glance

(As of September 2012)

Corporate income 12% (a)
Capital gains 12%
Branch tax 12%
Withholding tax
Dividends 0%
Interest 0%
Royalties 10% (b)
Technical service fees 10% (c)
Branch remittance tax 0%
Net operating losses
Carryback 0
Carryforward 5 years (d)
  1. A flat 12% rate applies to all businesses, including branches and PEs of foreign companies. Income from the sale of petroleum remains subject to a special provision rate of 55%.
  2. Foreign companies without a PE in Oman that derive Omani-source royalties are subject to a 10% withholding tax on the gross royalty, withheld by the Omani payer and remitted to the tax authorities. The definition of royalties includes, among other payments, those for the use/right to use software, intellectual property rights, patents, trademarks, drawings and equipment rentals.
  3. Foreign companies that do not have a PE in Oman and that derive Omani-source income through management fees, consideration for the use/right to use computer software and consideration for research and development are subject to a 10% withholding tax on the gross amount, which is withheld by Omani entity and remitted to the tax authorities.
  4. No loss may be deducted or carried forward if incurred from carrying on any tax-exempt business unless incurred during a tax exemption period granted under Article 118 of the Income Tax Law (in which case, such loss generally may be carried forward indefinitely).

Qatar: tax authorities

Ministry of Economy & Finance
PO Box 83, Doha, Qatar
Tel: +974 441 494
Fax: +974 443 5370
Email: tax@mof.gov.qa
Website: www.mof.gov.qa

Qatar: tax rates at a glance

(As of September 2012)

Corporate income 10% (a)
Capital gains 10%
Branch tax 10% (d)
Withholding tax
Dividends 0%
Interest 7%
Royalties 5%
Technical service fees 3%-7% (b)(c)
Branch remittance tax 0%
Net operating losses
Carryback 0
Carryforward 3 years
  1. The general tax rate is a flat 10%, with a 35% rate applying to oil and gas operations.
  2. Technical service fees paid to a nonresident are subject to a 5% withholding tax.
  3. A 7% withholding tax applies to commissioners, brokerage fees, directors’ fees; attendance fees; and for other services performed in whole or in part in Qatar.
  4. A retention tax of 3% of the contract value or the final payment (whichever is higher) applied to payments made to a branch registered for a particular project (temporary branch).

Saudi Arabia: tax authorities

Ministry of Finance
Al Malaz, Riyadh, 12641, Saudi Arabia
Tel: +966 405 0000
Fax: +966 405 9502
Email: info@mof.gov.sa
Website: www.mof.gov.sa

Saudi Arabia: tax rates at a glance

(As of September 2012)

Corporate income 20% (a)
Capital gains 20%
Branch tax 20%
Withholding tax
Dividends 5%
Interest 5%
Royalties 15%
Technical service fees 5%
Branch remittance tax 5%
Net operating losses
Carryback 0
Carryforward Indefinite (b)
  1. 20% corporate tax applies to a non-Saudi’s share in a resident corporation and on income derived by a nonresident from a permanent establishment in Saudi Arabia. The rate on taxpayers working in the exploitation of natural gas sector is 30%, and that on taxpayers engaged in the production of oil and hydrocarbons is 85%.
  2. Tax losses may be carried forward indefinitely provided the minimum amount deducted in each tax year does not exceed 25% of the annual profits as per the tax return

United Arab Emirates: tax authorities

Ministry of Finance and Industry
Abu Dhabi
Postal address: PO Box 433, Abu Dhabi
Tel: +971 2 6726000
Fax: +971 2 6768414

Dubai
3 A Street, Dubai, UAE
Postal address: PO Box 1565, Dubai
Tel: +971 4 3939000
Fax: +971 4 3939738
Email: webmaster@mof.gov.ae
Website: www.mof.gov.ae

United Arab Emirates: tax rates at a glance

(As of September 2012)

Corporate income 0% (a)
Capital gains 0%
Branch tax 0%
Withholding tax
Dividends 0%
Interest 0%
Royalties 0%
Technical service fees 0%
Branch remittance tax 0%
Net operating losses
Carryback 0
Carryforward 0
  1. Branches of foreign banks are taxed at rates agreed with the ruler of the Emirate in which they operate, generally at a flat rate of 20%. Oil and gas exploration and production companies are taxed at flat rates of 50% in Dubai and 55% in Abu Dhabi.

Tax

The wave of demonstrations known as the Arab Spring disrupted business activity in the six GCC states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. The aim of policy initiatives has been to stabilise the economy rather than specific tax reforms. ... [more]

The Cragus Group has capabilities in international tax, corporate structuring, strategic advisory, transfer pricing and dispute resolution matters. Large oil majors, oilfield supply companies, technology companies and financial service providers are ... [more]

Deloitte has 29 offices across the Middle East region, covering all the GCC's members and more. The GCC tax practice leader, Nauman Ahmed is based in Saudi Arabia. Practices differ across the region, but there has been a general growth in the past year ... [more]

Recognised for her capital markets and financial industry expertise , Michelle Kotze is the new head of tax for Ernst & Young. She leads a tax team that is considered by fellow practitioners to be the traditionally stronger practice within the region.The ... [more]

Though the KPMG Dubai tax team was only officially established in 2003, it has quickly become a strong presence in the market. Seven partners are spread across several offices across the GCC, including Saudi Arabia, Kuwait, Oman, Qatar and the UAE. They ... [more]

PwC

PwC has one of the largest tax teams in the GCC with 23 partners and over 250 fee earners spread across the region. The team works with governments and all types of taxpayer such as, financial institutions, private clients and multinational corporations ... [more]

Cramer-Salamian is a small firm that is based in Switzerland with an office in UAE, the firm's tax practice focuses on corporate tax planning and structuring. The tax practice is led by Yann Robert Mrazek. The team has extensive knowledge and local legal ... [more]

Emile Bongers co-heads Stibbe's Dubai office with Michael Molenaars, who works in Amsterdam. The Dubai office is backed up by tax advisers in Amsterdam and Luxembourg. The team is often involved in advising international clients on cross-border investments. ... [more]

See also

Gulf Cooperation Council
Middle East

Firm contact details