Tax authorities
Kuwait
Kuwait Ministry of Finance
Tel: +965 248 2000
Email: webmaster@mof.gov.kw
Website: www.mof.gov.kw
Oman
Oman Ministry of National Economy
PO Box 881 Muscat, Postal Code 100, Sultanate of Oman
Tel: +968 2469 8900
Fax: +968 2469 8467
Email: mone@omantel.net.om
Qatar
Qatar Ministry of Finance
P.O. Box 83 Doha Qatar
Tel: +974 441 4944
Fax: +974 4435370
Website: www.mof.gov.qa
Saudi Arabia
Saudi Arabia Department of Zakat & Income Tax
Income Tax Department, PO Box 6898 1487, Riyadh Saudi Arabia
Tel: +966 1 404 4375/4387
Website: www.zakat.gov.sa
Ministry of Finance
Riyadh 11177
Kingdom Of Saudi Arabia
Tel: +966 1 405 0000
Request information: info@mof.gov.sa
Website: www.mof.gov.sa
United Arab Emirates
Ministry of Finance
Abu Dhabi Office
P.O.Box: 433
Tel: +971 2 672 6000
Fax: +971 2 666 3088
Dubai Office
P.O.Box: 1565
Tel: +971 4 393 9000
Fax: +971 4 393 9738
Email: mofi@uae.gov.ae
Website: www.uae.gov.ae/mofi/
Tax rates at a glance
Kuwait
(As of September 1 2009)
| Corporate income tax rate (%) |
15(a) |
| Capital gains tax rate (%) |
15(a) |
| Branch tax rate (%) |
15(a) |
Withholding tax (%) |
|
| Dividends |
0 |
| Interest |
0(b)(c) |
| Royalties |
0(b) |
| Management fees |
0(b) |
| Branch remittance tax |
0 |
Net operating losses (Years) |
|
| Carryback |
0 |
| Carryforward |
3(d) |
(a) Under Law No 2 of 2008, for fiscal years beginning after February 3 2008, the tax rate is a flat 15%. Before the approval of this new law, Amiri Decree No 3 of 1955 had provided that the maximum rate of tax was 55%. The maximum rate under Law No 23 of 1961 is 57%.
(b) This income is treated as ordinary business income and is normally assessed on a deemed profit ranging from 96.5% to 100%.
(c) Under article 2 of the Bylaws, income derived from the granting of loans by foreign entities in Kuwait is considered to be taxable income in Kuwait, which is subject to tax at a rate of 15%. In the past, foreign banks that solely granted loans in Kuwait were not taxed on the interest income received with respect to these loans.
(d) Article 7 of the Bylaws provides that losses may be carried forward for a maximum of three years (as opposed to an unlimited period under the prior tax law) if the entity has not ceased its operations in Kuwait.
Source: Ernst & Young
Oman
(A new tax law is expected to be issued in 2009)
| Corporate income tax rate (%) |
30 |
| Capital gains tax rate (%) |
30 |
| Branch tax rate (%) |
30 |
Withholding tax (%) |
10(a) |
| Net operating losses (Years) |
|
| Carryback |
0 |
| Carryforward |
5 |
(a) This tax is imposed on the following earnings of foreign companies without a permanent establishment in Oman:
• Royalties
• Rent for equipment
• Management fees
• Fees for transfers of technical know-how
• R&D fees
Companies or permanent establishments in Oman that pay these items must deduct tax at source and remit it to the secretary general of taxation.
Source: Ernst & Young
Qatar
(As of September 2009)
A new income tax law is expected to be enacted in Qatar in 2009. The law has been referred to the Advisory Council for consideration. It is expected that the new law will provide for a standard income tax rate of 12%, which will replace the existing progressive income tax rates that include a maximum rate of 35%. In addition, the new law will include more comprehensive guidance on the definition of allowable costs and expenses, loss relief, transfer pricing and thin capitalization. A system of withholding taxes on passive income is also expected to be introduced. Because of the expected enactment of the new income tax law, readers should obtain updated information before engaging in transactions.
| Corporate Income Tax Rate (%) |
35* |
| Capital Gains Tax Rate (%) |
35* |
| Branch Tax Rate (%) |
35* |
Withholding Tax (%) |
0 |
| Net Operating Losses (Years) |
|
| Carryback |
0 |
| Carryforward |
3 |
* This is the maximum rate (see Section B).
Source: Ernst & Young
Saudi Arabia
(As of September 2009)
| Corporate income tax rate (%) |
|
| Companies engaged in natural gas investment activities |
30 to 85 |
| Entities engaged in oil and other hydrocarbon production |
85 |
| Other companies |
20 |
Capital gains tax rate (%) |
20 |
| Withholding tax (%) |
(a) |
| Dividends |
5 |
| Interest |
5 |
| Royalties |
15 |
Net operating losses (Years) |
|
| Carryback |
0 |
| Carryforward |
Unlimited |
(a) The withholding tax rates in Saudi Arabia range from 5% to 20%.
Source: Ernst & Young
United Arab Emirates
(As of September 2009)
| Corporate income tax rate (%) |
0 |
| Capital gains tax rate (%) |
0 |
| Branch tax rate (%) |
0 |
| Withholding tax (%) |
0 |
Source: Ernst & Young
Tax
After years of boom from strong oil and gas exports, the states of the Gulf Cooperation Council have now found themselves competing with one another to attract foreign investors, amid fears that the supplies will run out eventually.This competition is ...
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After years of boom from strong oil and gas exports, the states of the Gulf Cooperation Council have now found themselves competing with one another to attract foreign investors, amid fears that the supplies will run out eventually.
This competition is taking the form of a race to discover who can reduce their corporate tax rates the most to entice foreign direct investment.
The race began five years ago when Saudi Arabia cut its rate from 45% to 20%, but things heated up only 18 months ago when Kuwait took the drastic step of reducing its rate from 55% to 15%.
Qatar is the latest to join in the competition. In late July, the government published plans to cut the rate from 35% to 10%. This news came only weeks after Oman reduced its rate from 30% to 12%. In Oman, the announcement formed part of a new tax law that included a number of other tax provisions aimed at enhancing business investment and also reducing the country's budget deficit. The new legislation states that companies are liable to tax on all their worldwide income, though taxpayers can avail of provisions granting relief for taxes paid overseas. A withholding tax of 10% will also be applied to payments made to foreign firms which do not have permanent establishments in Oman. The government has outlined a new 90-day threshold for creating a permanent establishment. Under the rule, a foreign company will be exempt from tax for visits of less than 90 days over a 12 month period. In Qatar, the government hopes the new rate will lure international business to the country while poaching business from competing Middle Eastern states. The rate cut forms part of a new income tax law that also includes tax incentives for specific industries including technology and mining. Tax revenues are initially expected to fall following this cut, but the government is likely to significantly reduce the amount of tax holidays that are available to businesses in Qatar.
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In an effort to further develop capabilities within the region, Deloitte has recently appointed several service line leaders. The firm has acquired many individuals across the GCC during the year, a number of whom have come from the UK tax practice. ...
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In an effort to further develop capabilities within the region, Deloitte has recently appointed several service line leaders. The firm has acquired many individuals across the GCC during the year, a number of whom have come from the UK tax practice. John Belsey joined in late 2008 as the international and M&A tax leader for the region. Additionally, Alex Law, who was previously building the real estate practice of Deloitte member firms in Eastern Europe, has also joined, as has Brandon George, a transaction specialist primarily focused on private equity and global reorganisations. As a result, Deloitte is collaborating closely with Deloitte UK from an indirect, transfer pricing and government tax administrative perspective, to ensure complete coverage of tax services across the GCC.
The firm has been active in the market in terms of lobbying the relevant ministries of finance. It is advising the Egypt Ministry of Finance on the introduction of a VAT as well as the administration and simplification of existing tax systems for governments across the GCC.
The firm's Saudia Arabia tax practice is present in the three major centres of the Kingdom (Riyadh, Jeddah and Al Khobar). It has 20 partners and directors and about 300 professional staff serving some of the largest multinational and national clients and is lead by Middle East tax leader, Nauman Ahmed.
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Ernst & Young's head of tax in the GCC is Sherif El-Kilany. He was appointed sole leader after former joint-head Farooq Ladha retired in June.El-Kilany has more than 27 years of experience and oversees 210 tax professionals across the region.Regularly ...
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Ernst & Young's head of tax in the GCC is Sherif El-Kilany. He was appointed sole leader after former joint-head Farooq Ladha retired in June.
El-Kilany has more than 27 years of experience and oversees 210 tax professionals across the region.
Regularly lauded as one of the largest tax firms in the region, Ernst & Young boasts office in every corner of the GCC and has developed a long list of clients both locally and internationally. The firm has also established a significant track record of assisting local governments and business entities as well as foreign companies establishing a presence across the region.
Two new partners have joined the firm in the past year. Chris Kealy will be based in Dubai, while Alok Chugh will operate out of Kuwait.
Head of the firm's international tax practice in the region is Howard Hull. Hull has more than 20 years experience and operates out of Dubai.
Finbarr Sexton is partner in charge of the Doha office. Resident in Qatar for 13 years, he has been involved in the evolution of the corporate tax law in Qatar as well as the impending changes to both the commercial and investment laws in the State.
Sridhar Sridharan is the partner in charge of some 39 tax professionals in Oman. He handles tax knowledge management for the Middle East practice and is a member of the firm's advisory council. He acts as the Middle East regional tax coordinating partner for one of the largest oilfield service companies in the world.
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KPMG is based all across the GCC states and boasts tax partners in all of its offices, despite tax often being an "alien" concept in some of the states. The firm is one of the first in the region to acknowledge the growing importance of tax in the region ...
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KPMG is based all across the GCC states and boasts tax partners in all of its offices, despite tax often being an "alien" concept in some of the states. The firm is one of the first in the region to acknowledge the growing importance of tax in the region as states begin to align their tax systems to more international standards. Not resting on their laurels, the firm has ploughed significant resources into areas such as transfer pricing and indirect tax. The firm is so committed to the introduction of VAT across the region by 2012, that it has been regularly offering guidance and advice to the respective governments on how VAT should and could be implemented.
Philip Marwood leads the regional tax practice. He is ideally placed to see tax develop in the region as he offers more than 25 years of international experience.
Based in Oman, Ashok Hariharan, is well-known for his transfer pricing work and is also regularly involved in tax controversy work, primarily for large petrochemical companies.
Operating out of Dubai is Mike Smith. He relocated in 2006 and quickly established himself as a cross-border structuring specialist. Clients include UAE sovereign wealth funds as well as multinational and local companies from various industries; private equity, real estate, transportation, oil & gas and banking.
The firm were the first among the big-four to start tax breakfast seminars in the GCC, which have been very well received. Clients and even competitors have acknowledged that such seminars have raised the profile of KPMG's tax practice and have helped in creating awareness among local and international business about some of the international tax issues faced by companies operating in the GCC.
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PricewaterhouseCoopers has quickly established a competent international tax structuring practice in the GCC. The team is based in Dubai with experts also located around the region. Since inception, this team has a built a reputation for providing advice ...
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PricewaterhouseCoopers has quickly established a competent international tax structuring practice in the GCC. The team is based in Dubai with experts also located around the region. Since inception, this team has a built a reputation for providing advice on all aspects of regional and international taxation. Dean Rolfe, the firm's Middle East tax leader, has worked in Australia, Luxembourg and the US. He is also the leader of the firm's Middle East tax practice and is responsible for the tax practice in 14 countries. The practice is assisting some of the regions largest private equity funds and investment houses with tax due diligence and structuring issues both in regional as well as international deals.
David Stevens has been recommended for his transfer pricing work. Stevens is the firm's transfer pricing leader and regularly draws on the firm's international network to help solve clients' concerns.
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The Cragus Group is still a young and growing practice, but happily promotes its status as the only independent tax advisory firm in the region. Cragus stands out among the other firms in the GCC because it employs a number of local tax professionals. ...
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The Cragus Group is still a young and growing practice, but happily promotes its status as the only independent tax advisory firm in the region. Cragus stands out among the other firms in the GCC because it employs a number of local tax professionals. The group has offices in all GCC states as well as Algeria, Nigeria and Saudi Arabia.
Though Cragus remains independent, it continues to work and support networks, in an informal correspondent capacity, including Tax Planet, Taxand and Transfer Pricing Associates.
Thanks to Reggie Mezu, formerly of Shell, the group regularly represents two of the largest six publicly owned oil companies as well as two of the largest seven state owned oil companies.
Recent work includes implementing and advising on a Middle East structure for a large international pharmaceutical group and a $124 million part-restructuring of a global hospitality brand and its subsequent acquisition. Both Mark Stevens and Robert Peake are respected for their advisory work.
The group has also been involved in the drafting of tax legislation and treaty advice for several gulf states.
The group was boosted this year by the appointment of Catherine Le Bourgeois who joined from for a quasi-governmental company in the GCC. She has taken the position of tax leader within the group.
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Latham & Watkins has been at the forefront of the tax community in the GCC for a number of years and has strengthened its practice with the opening of offices in Abu Dhabi, Doha and Dubai last year. The firm has grown to more than 30 lawyers in the Middle ...
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Latham & Watkins has been at the forefront of the tax community in the GCC for a number of years and has strengthened its practice with the opening of offices in Abu Dhabi, Doha and Dubai last year. The firm has grown to more than 30 lawyers in the Middle East, consisting of some of the most active and strategic deal makers in the region.
Most of the firm's practice is run from London, but associates Alex Cole and Caroline Townsend are regularly seconded to the GCC. Representing the region from London are partners Daniel Friel and Sean Finn who have both been involved in some of the firm's larger transactions in the past year.
The firm represented the State of Qatar and NYSE Euronext in their strategic alliance which transformed the Doha Securities Market (DSM) into a global exchange space and provided NYSE Euronext with a presence in the Middle East. NYSE Euronext purchased a 25% stake in the DSM for $250 million in cash, which represented the largest investment ever made by NYSE Euronext in a foreign exchange.
They also worked on the groundbreaking Nakilat liquefied natural gas (LNG) ship financing in Qatar. In what was the largest ship financing ever completed, Latham & Watkins represented Qatar Gas Transport Company (Nakilat Inc.), in connection with its $7.3 billion project financing of and related tax structuring work regarding more than 20 LNG vessels to transport LNG produced from Qatar's North Field.
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Bracewell & Giuliani's tax department also operates with only one Dubai-based and US-qualified lawyer. James Couch is ex-in-house from Chevron and tax professionals have claimed that he "definitely knows his tax".
Gibson Dunn & Crutcher is a small firm but is rapidly becoming visible within the tax community. The firm boasts only one international tax adviser. Recently arrived, Dubai-based and US-qualified Peter Banbusch has been described as a "tax legend" by ...
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Gibson Dunn & Crutcher is a small firm but is rapidly becoming visible within the tax community. The firm boasts only one international tax adviser. Recently arrived, Dubai-based and US-qualified Peter Banbusch has been described as a "tax legend" by his peers.
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