GCC Corporate Tax and Related Compliances
The tax landscape in the Gulf Cooperation Council (“GCC”) countries has recently undergone significant changes. Among these recent developments, we find the introduction of corporate tax in the UAE. Let us have a look at the corporate tax compliances and rates in the GCC.
GCC Countries Corporate Tax Rates
|
|
KSA |
Oman |
Kuwait |
Qatar |
UAE |
|
CT Rate
|
85% - Production of oil and hydrocarbons 20% - Others 2.5% - Zakat
|
3% - Small and Medium sized enterprises 55% - Petroleum 15% - Others
|
15% - CT rate 1% - Zakat
|
35% - Petroleum operations or the petrochemicals industry 10% - Others
|
9% - Above 375,000 AED 15% - Large multinationals that meet specific criteria
|
|
Annual corporate tax return
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Within 120 days from the end of taxable year
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Within 4 months from the end of the accounting year
|
Within 15 days of 4th month following the end of taxable period
|
Within 4 months from the end of the taxable year
|
Within 9 months from the end of tax period
|
|
Withholding tax payment
|
10 days from the end of month in which payment was made
|
14 days from the end of the month in which payment is made or tax is deducted
|
No withholding tax. However, must retain 5% of contract value and pay it after receiving tax clearance certificate from the payee
|
16 days from the end of the month in which tax is deducted
|
NA
|
|
Annual Withholding tax return
|
Within 120 days from the end of financial year
|
NA
|
NA
|
Details of withholding tax to be submitted with the annual tax return
|
NA
|
|
Advance or accelerated tax payments
|
Pay advance income tax in 3 equal quarterly instalments, if due
|
NA
|
NA
|
NA
|
NA
|
|
Contract information form
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Within 3 months from conclusion of the contract
|
NA
|
Notification to tax authority upon conclusion of contracts
|
Notify the tax authority within 30 days of signing the contract.
|
NA
|
|
Transfer pricing (TP) or related party disclosure form
|
120 days from the year-end
|
NA
|
No formal TP regulations. But the tax authorities deem profit margins on certain activities
|
To be submitted with the annual tax return
|
Yet to be specified
|
|
Transfer pricing documentation
|
Maintain local file and master file - subject to threshold limits
|
NA
|
NA
|
Maintain local file and master file subject to threshold limit
|
Maintain local file and master file subject to threshold limits (yet to be specified)
|
|
Country-by –country notification
|
120 days from the year-end
|
Last day of the financial year
|
NA
|
Last day of the financial year
|
Last day of the financial year
|
|
Country-by –country report
|
12 months from year-end
|
12 months from year-end
|
NA
|
12 months from year-end
|
12 months from year-end
|
How can we help?
Tax is an integral part of any business, and its impact is far-reaching. As such, it is crucial to ensure timely submission of tax compliances and reporting requirements to mitigate any penalties that would lead to unwarranted tax liability.
Crowe UAE can assist businesses in
01
Undertaking tax compliances within the stipulated timeline
02
Restructuring the business models/operations in a tax efficient manner with a holistic approach
03
Advising on cross border transactions
04
Undertaking TP risk and opportunity analysis
05
Implementing TP policies
06
Updating the existing system to meet tax requirements
07
Drafting of local file and master file
and many other tax services that add value to our clients’ businesses
