Me tax facts 2012

CONTENTS

BAHRAIN 3

EGYPT 11

KUWAIT 21

LEBANON 31

OMAN 34

QATAR 45

SAUDI ARABIA 50

U.A.E. 59

3

BAHRAIN
TAX FACTS 2012

BDO Public Accountants

10th & 11th Floors
GBCORP Tower
Bahrain Financial Harbour
PO Box. 787
Manama, Kingdom of Bahrain

Tel: +973 17 530 077
Fax: +973 17 530 088

Email: info@bdo.bh
www.bdo.bh

Bahrain Tax Facts 2012 4

CONTENTS

05 Corporate Income Tax
06 Personal Income Tax
07 Social Insurance
08 Withholding Tax
09 Other Duties and Fees
10 Bi-lateral Tax Treaties


Corporate Income Tax

CORPORATE TAX

There is no corporate taxation system in Bahrain with the exception of profits arising
from the extraction of petrochemical products.

Corporate income tax on the profits of companies engaged in the exploration,
production or refining of oil and gas in Bahrain is levied at a rate of 46%. Taxable
income for oil and gas companies is on net profits, which consist of business income less
business expenses.

FILING REQUIREMENTS

Oil and gas companies are required to file an estimated tax declaration on or before the
15th day of the third month of the tax year. Tax must be paid in 12 monthly
installments.

CARRY FORWARD LOSSES

Taxable losses of oil and gas companies may be carried forward indefinitely. Carry back
is not permitted.


Personal Income Tax

There is no personal taxation system for income, capital gains, gifts or inheritances in
Bahrain and, furthermore, no requirements to file any form of tax return.


Social Insurance and
Other Contributions
SOCIAL INSURANCE

Social insurance contributions are payable for Bahrainis at a rate of 18% of basic wages
of which 12% is the employer's contribution and 6% is the employee contribution.
Unemployment insurance at a rate of 1% is also payable by both Bahrainis and
expatriate employees. The base for the calculation of social insurance contributions
cannot exceed BD 4,000 per month. In case the salary exceeds BD 4,000 per month, the
amount of contribution will be calculated only on BD 4,000.

EXPATRIATE EMPLOYEE MONTHLY FEE

Each entity that is registered with the Labour Market Regulatory Authority (LMRA) is
required to pay 10 Bahraini Dinars for every expatriate employee employed in Bahrain.
Due to the current unrest in Bahrain, this fee has been waived by the LMRA until further
notice.

TRAINING LEVY

Organizations with 50 or more employees are liable to pay the training levy at a rate of
4%. The base for the calculation of the training levy is the gross salary of expatriate
employees as registered with Social Insurance Organization, but limited to BD 4,000 per
month per employee. Training levy applies only on salaries paid to expatriates.

END OF SERVICE BENEFIT

Expatriate employees at the completion of their employment contract are entitled to an
end of service benefit which is calculated on the following basis:

 Fifteen days salary for every year of service for the first three years of continuous
service;
 One month's salary for every year of service thereafter.

If an employee leaves the services of the employer within 3 years then no end of service
benefit is payable to the employee. However if an employee leaves the services after 3
years but less than 5 years, then the number of days entitlement is one-third of the
total days calculated based on the above. However if the employer terminates the
services of an employee, then full end of service benefit is paid to him, irrespective of
the number of years of employment with the employer.

-


Withholding Tax

There is no withholding of taxes on the repatriation of profits or dividends, royalties,
license fees or group charges. However, if the investor operates in other countries in
the region, the withholding tax rules in those countries will need to be taken into
account in the regional business structure.


Other Duties and Fees

TOURISM LEVY

Persons using hotel facilities are normally charged a government levy of 5% and a 15%
service charge is generally added to the total bill amount.

VALUE ADDED TAX

Bahrain has no value added tax.

MUNICIPAL TAX

Municipal tax is payable by individuals or companies renting property in Bahrain. The
rate of the tax varies according to the nature of the property, namely; unfurnished
/furnished residential or commercial property. However this is generally 10% of the
monthly rental.

CUSTOM DUTY

There are no customs duties on trade in locally manufactured goods between Gulf
Cooperation Council (GCC) countries (Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and
the United Arab Emirates) where the local shareholding is at least 51% and value added
in goods produced exceeds 40%. On all other imports, custom duties are levied at a rate
of 5%, with the exception of tobacco products (100%), liquor (125%) and duty free of
imports of vegetables, fruits, fresh and frozen fish, meat, books, magazine and
catalogues.

LAND REGISTRATION TAX

There is a land registration fee payable to the government on the transfer of real estate
property. The fee for Registration of Sales Agreement of property is as follows:

 From BD1 to BD70,000 - 1.5%, with Discount 1.25%*
 From BD70,000 to BD120,000 - 2%, with Discount 1.8%*
 From BD120,000 and above - 3%, with Discount 2.7%*

* Survey and Land Registration Bureau of the Kingdom of Bahrain offers a 10% discount
calculated on the total registration fees, if the registration process begins within two
month from the execution of the Registration and Sales Agreement.


Bi-lateral Tax Treaties

Bahrain has signed treaties for the avoidance of double taxation with the following
countries:

Algeria, Austria, Belarus, Belgium, Brunei, Bulgaria, China, Egypt, France, Iran, Ireland,
Jordan, Lebanon, Luxembourg, Malaysia, Morocco, Netherlands, Pakistan, Philippines,
Singapore, Sudan, Syria, Thailand, Turkey, Uzbekistan, United Kingdom and Yemen.

Note : Some of the above treaties are not yet in force.

Bahrain has an inheritance tax treaty with France.

In addition, a US-Bahrain Free Trade Agreement (FTA) has been entered into between
the two countries. This agreement gives customs duty exemption to all US industrial
and agricultural products. Particulars of the Tariff Elimination as explained in the FTA
are as follows:

The Agreement provides for the elimination of all customs duties on originating goods
no later than 10 years following the entry of the FTA into force. The Agreement is
comprehensive and covers all tariff lines. When the FTA became effective, 96% of
Bahrain industrial and agricultural products gained duty-free access to the United States
markets. Tariffs on the remaining products, which are not currently produced in
Bahrain, have been phased-out according to the following staging categories:

Category A: Immediate duty-free access (96% of industrial and agricultural products).
Category B: Duties will be eliminated in 10 equal annual stages (1% of industrial and
agricultural products).
Category C: Goods that are already duty free and will continue to receive duty-free
treatment.
Category D: Duties will be eliminated in 5 equal annual stages (3% of industrial and
agricultural products).

Bahrain is to provide immediate duty-free access on all US industrial and agricultural
products, except 80 products on which the duties will be phased-out over 10 years.

11

EGYPT
TAX FACTS 2012

BDO Egypt Consulting Ltd.

1, Wadi El Nile St.,
Mohandessin, Giza
Cairo. Egypt
P.O.Box.: 110/12655

Tel: +202 3303 0701
Fax: +202 3303 2228

www.bdo.com.eg

Egypt Tax Facts 2012 12

CONTENTS

15 Salary Tax
17 Social Insurance
18 Sales Tax
19 Stamp Tax
20 Withholding Tax



RATES OF CORPORATE TAX

In general, the standard rate of corporate tax is 20% applied to the company’s taxable profits.
Starting the fiscal year 2011, an additional tax rate had been imposed, being 25% on taxable
profits in excess of EGP 10 million.

THE CORPORATE TAX YEAR

The rate of corporate tax is fixed in respect of the corporate tax year or the financial year.

The company has the right to choose the date of year-end to issue its annual financial
statements, regardless of the calendar year. Each year has to be accounted for separately. The
first year is to start from the date of incorporation to the end of the following financial year
(long period).

DEDUCTIBLE EXPENSES

The general rule is that only expenses that are wholly and exclusively incurred in earning the
income of the business are deductible. The cost and expenses have to be supported by proper
documents.

ACCOUNTING METHODS AND BUSINESS PROFITS

A company’s taxable income is based on its accounting profits, computed according to the
Egyptian Accounting Standards, which is, to a great extent, compliant with the International
Financial Reporting Standards (IFRS).

FILING REQUIREMENTS

The corporate tax return must be filed along with all supporting documents (e.g. Audited
financial statements), within four months from the accounting year end, e.g. 30 April, for 31
December year end.


Losses (on a year by year basis) are carried forward for deduction from subsequent profits for
up to five years.


Corporate Income Tax –
Continued

DIVIDENDS

There is no withholding tax on the payment of dividends, whether the recipient is resident or
non-resident.

PAYMENT TO NON-RESIDENTS

The amounts paid to foreign entities against services rendered, are subject to withholding tax
at a rate of 20%, even if it is paid to an entity that is resident of a country that has a double
tax treaty with Egypt. It is the overseas recipient's responsibility to apply to the Egyptian Tax
Authority for refunding the balance between the 20% withheld taxes and the rates on royalties
and interest, as per the treaty, should that exist.


Salary Tax

BASIS OF TAXATION

The salary tax is the liability of the employee not the employer. However, the employer is
responsible to withhold and remit the salary tax on behalf of the employee on a monthly basis.

Salary tax is applicable to the following:

 All earnings due to the employee resulting from his/her work with third parties with or
without a contract, periodically or non-periodically, whatever the names, forms or
reasons of those earnings, and whether they are for works performed in Egypt or abroad
and paid by a source in Egypt, including wages, remunerations, incentives, commissions,
grants, overtimes, allowances, shares and portions in profits, as well as the monetary
privileges and allowance in kind of all types.

 Earnings due to the employee from a foreign source for works performed in Egypt.

 Salaries and remunerations of chairman, members and directors of the boards of directors
in the associations of capital in return for their administrative work.

RATES OF SALARY TAX

The Taxable employee’s income is subject to progressive rates as follows:

First L.E. 5,000 0%

Between L.E. 5,000 and L.E. 20,000 10%

Between L.E. 20,000 and L.E. 40,000 15%

Between L.E. 40,000 and L.E. 10,000,000 20%

More than L.E. 10,000,000 25%

TAX ON PAYMENT TO NON-RESIDENT

Amounts paid to non-residents (staying in Egypt less than 183 days in any 12 months) from any
source, are subject to 10% taxes, without any deductions.


Salary Tax - Continued

FILING REQUIREMENTS

 Employers are required to submit a quarter salary tax return to the Tax Authority within one
month from the end of each calendar quarter.
 Taxes are to be withheld monthly and paid to the Tax Authority during the first 15 days of
the following month.

BENEFITS-IN-KIND

Benefits in kind that are given to the employees shall be determined on basis of the market
value. However, the value of the following benefits in kind shall be estimated as follows:

Benefits Tax Treatment
The cars expenses (used by 20% of the total car expenses is subject to salary
the employee) tax.
20% of the total mobile invoices is subject to
the mobile expenses
salary tax.
The difference between the interest rate 7% and
The employees' loans with the employees’ loan interest (if it’s less than 7%)
interest rate less than 7% is subject to salary tax.

The value of the benefit shall be determined on
The company's stocks granted the basis of the difference between the market
at a value less than the value of the stock on the date it is obtained and
market value of the stock. the value reckoned for the workers.

Life insurance premium paid The benefit shall be determined at the premiums
by the company paid by company.

TAX EXEMPTION

 Personal allowance of L.E. 4,000 pa (over and above the zero-rated L.E. 5,000 of the annual
salary).
 Social insurance subscriptions and Private insurance funds.
 Life insurance installments and Medical insurance.
 The following fringe benefits: employees meals, medical care, employees' group
transportation, employees' uniform, housing allowed by the employer to the employees
related to performing their work.
 Employees share in profit distribution.


Social Insurance

Social insurance applies to Egyptian nationals in full – time employment, unless a social security
totalization agreement provides otherwise. Employees pay a portion of their wages through
employer withholding, in addition to another portion borne by the employer.

SOCIAL INSURANCE RATE

The rate of Social Insurance is as follows, showing the employer and employees’ portions:

Employer Employee
Amount
% %
Basic salary up to L.E. 875/month 26 14
Monthly amounts in excess of L.E. 875
for other payments such as overtime
24 11
or representation allowances, up to
L.E. 1050

FILING REQUIREMENTS

 The company has to pay social insurance (employee portion & employer portion) to the
Social Insurance Authority within 15 days of the following month.

 Semi-annual social insurance form 2 has to be submitted in January and July of each year.


Sales Tax

The General Sales Tax (GST) in Egypt is to a great extent similar to VAT system in the EEC
countries. GST is imposed on:

 Goods; where the general tax rate is 10% on each invoice.
 Services; which are subject to sales tax at various rates. There are some services which are
not subject to tax such as the training services, professional services, and consultancy
services.

TAXES ON INPUT

For goods, in most cases, the company can deduct the sales tax paid on inputs from the sales tax
on output, and pay the balance monthly, together with a monthly tax return.

For services, it is not allowable to deduct the sales tax paid on inputs from the sales tax on output
in relation to services.

INVOICES DETAILS

The following are the details that must be included on customer invoices:
 Invoice number starting from one.
 The company address in Egypt
 Sales tax registration number.
 Commercial registration number.
 Corporate tax number.
 Customer name.

EXPORTED GOODS AND SERVICES

Both exported goods and services are subject to sales tax at a rate of zero%.

BASIS OF TAXATION

The earlier of the following shall be considered as the tax point, and the company has to settle
the sales tax accordingly:

 The date of issuing the invoices.
 The date of delivery of commodity or rendering the services.
 The date of payment of the commodity value or the return of services, whether being
wholly or partially, or an amount paid on account or settlement of account, or on credit,
or any other means of payment.


Stamp Tax

Stamp tax is generally imposed on the following:

 Documents: a wide range of documents including certificates and declarations, judicial
documents,
 Advertisements, licenses, utility bills.
 Contracts: all types of contracts
 Transactions: wide range of transactions such as banking transaction (i.e. loans,
deposits, accounts and documents), insurance premiums, transportation
 Services, lotteries, company registrations, etc.

There are two types of stamp duty rates. The first is a fixed amount that is imposed on
documents, contracts, etc. The amount of fixed stamp duty is specified in the legislation and
varies according to the document in question. The second is a proportionate rate and this,
generally, applies to transactions. The proportionate rate is calculated as a percentage.

There are many percentages and amounts paid according to the Stamp Tax Law. However,
below are the important items:

Amount L.E

Contract 1.00 per page

Certificate 1.00 per page

Amount L.E

Loan 0.2%
Advertising in news papers & TV. 15%

FILING REQUIREMENTS

There are various date of filing such as:

 Stamp tax return for advertising has to be submitted during 2 months from the date of
publishing of advertisement.
 The stamp tax on loan has to be settled on quarterly basis


Withholding Tax on Local

Transactions

BASIS OF TAXATION

All entities including projects established as free zone companies are obliged to withhold a tax
percentage from every amount paid exceeding L.E. 300 on the account of the corporate tax of
the vendor.

RATES OF WITHHOLDING TAX

Transaction Rate

Services 2%

Construction 0.5%

Supplies 0.5%

Individual professional fees 5%

FILING REQUIREMENTS

Entities are obliged to settle the withholding tax due before end of April, July, October, and
January of every year.

21

-

KUWAIT
TAX FACTS 2012

BDO Al Nisf & Partners

Al Johara Tower,
6th Floor
Khaled Ben Al Waleed Street,
Sharq
P.O. Box 25578,
Safat 13116, Kuwait

Email: tax@bdo.com.kw
Tel: +965 2242 6999
Fax: +965 224o 1666

Kuwait Tax Facts 2012 22

CONTENTS


29 Other Taxes




Tax is levied at a flat rate of 15%.

INCOME SUBJECT TO TAX

Any income earned from carrying out business or activities in the State of Kuwait, either directly or through
an agent, is taxable. An agent is a person or entity authorized by a principal to carry out business or activity
on behalf of and for the account of the principal under a binding agreement.

Income earned by any entity from the following is deemed to be earned from the State of Kuwait and
therefore taxable in Kuwait.

i) Income earned from any activities or businesses wholly or partially executed in the State of Kuwait,
including income earned from the supply and sale of goods or provision of services whether the
contract has been concluded inside Kuwait or abroad.

ii) Royalty, franchise, license and similar fees earned from Kuwait.

iii) Commissions or fees earned in cash or in kind from representation or brokerage agreements
relating to Kuwait.

iv) Profit from any industrial or commercial activity in the State of Kuwait.

v) Profit from sale or transfer of assets including sale of shares in a company whose assets are
principally formed of immovables in the State of Kuwait (profits from sale of shares listed on the
Kuwait Stock Exchange are however not taxable).

vi) Income earned from lending of funds in the State of Kuwait.

vii) Profit from purchase and sale of goods or property in the State of Kuwait including rights associated
with tangible or intangible assets.

viii) Income earned from having a permanent office in Kuwait where sale and purchase contracts are
concluded including place of work from where activity is carried out or contracts concluded
(irrespective of whether such place of work is owned, leased or belongs to a third party).

ix) Profit from leasing of any movable or immovable property for use in the State of Kuwait.

x) Profit from rendering of services in Kuwait including fees from administrative, technical or
consulting services (irrespective of whether the contract is wholly or partially performed in the
State of Kuwait or signed inside Kuwait or abroad).


Corporate Income Tax -
Continued

Capital gains from trading in securities on the Kuwait Stock Exchange is exempted from tax.

Any income earned by individuals (natural persons) is not taxable in Kuwait.

Entities which are fully owned by Kuwaitis are not taxed. Also, entities which are registered in the Gulf
Cooperation Council (GCC) countries (comprising of Kuwait, Saudi Arabia, Bahrain, UAE, Oman and Qatar)
and fully owned by Kuwaiti / GCC citizens or any corporations which are in turn fully owned by Kuwaiti /
GCC citizens are not taxed in practice.

A foreign entity with a shareholding in a local Kuwaiti company is required to calculate and pay tax based
on its share of profit in the local entity.


The taxable period is a year and normally has to be the calendar year. A body corporate may,
within three months from the date of signing the contract or the date of commencing the
business activity in Kuwait, apply to the Director of the Income Tax Department for permission
to submit its first tax return for a period of less than one year (but not less than 7 months) or for
an extended period of up to 18 months. It is at the discretion of the Tax Department to grant
approval for a tax period which is less than or more than a year.

DEDUCTIBLE EXPENSES

All expenses directly incurred in carrying out trade or business in Kuwait, subject to the limits specified in
the tax law and regulations, are allowed as a deduction in computing taxable profit, provided that the
expense claimed as a deduction is:

a) necessary for earning the revenue;
b) real and supported by proper documents; and
c) related to the taxable period.


A company’s taxable income is based on its net profit, computed according to the Kuwait Income Tax
Decree of 1955 and related regulations which, inter alia, specify limits on deduction of certain expenses.


- Continued

FILING REQUIREMENTS

The tax declaration of each taxable period is required to be submitted within 3½ months of
the end of the taxable period. It is possible to seek extension up to 60 days in filing of the
tax declaration. Application for extension of time for filing tax declaration should be
submitted on or before the 15th day of the second month following the end of the taxable
period. It is at the discretion of the Director of Income Tax to grant an extension. If the Tax
Department does not respond to the request for extension in filing tax declaration within 30
days of the application date, it should be assumed that the application is rejected.

Taxes have to be paid in four instalments on the 15th day of the 4th, 6th, 9th and 12th
month following the end of the tax year. In case extension is granted, tax has to paid fully at
the time of filing the tax declaration.

Delays in the submission of the tax declaration is subject to tax penalties at the rate of 1% of
the tax payable for each 30 days delay or part thereof. Additionally, penalty is charged for
any delay in payment of tax, at the rate of 1% of the tax due for each 30 days delay or part
thereof.

The tax declaration has to be filed together with the following:

a) Report from an auditor registered with the Ministry of Commerce & Industry and
approved by the Ministry of Finance
b) Financial statements
c) Trial balance
d) Statement of fixed assets
e) Statement of subcontractors showing name, address, value of work performed during
the taxable period, retention held and copy of last payment certificate
f) Inventory statement showing stock quantity and amount
g) Details of contracts in progress showing the income and expenses relating to each
contract
h) Copy of last payment certificate issued by project owner
i) For insurance companies, statement showing details of reinsured policies and their
terms

TAX INSPECTION AND ASSESSMENT

Following the filing of the tax declaration, it is a normal practice for the Income Tax
Department to carry out an inspection of body corporate’s books and records to verify the
income and expenses reported in the tax declaration to the supporting documents.


- Continued

Based on the findings from the tax inspection, adjustments are normally made to the taxable
profit e.g. if expenses are not supported, they are disallowed at the time of the tax
inspection. Following the tax inspection, an assessment letter is issued.

If additional taxes are assessed, the body corporate has the option of paying the additional
taxes (within 30 days of the assessment letter, otherwise a penalty of 1% is levied for every 30
days delay or part thereof in paying the additional tax) or raising an objection within 60 days
from the date of the tax assessment letter.

If an objection is not raised within 60 days, tax as per the assessment letter becomes final
and payable. If an objection is raised but is not satisfactorily resolved within 90 days from the
date of the objection letter, the body corporate has the right to have its case heard by an
Appeals Committee.

Tax appeal has to be filed within 30 days from the date of issue of the Tax Department’s
letter in response to the tax objection or, in case of no response from the Tax Department,
tax appeal has to be filed within 30 days after the end of the 90 days period from the date the
objection letter was filed.

If the appeal is not filed within the 30 day period, the assessment by the Tax Department
becomes final and payable. If the body corporate is not satisfied with the outcome of the
Appeals Committee decision, it has the option to refer the case to the concerned courts
within 60 days from the date of the tax appeal committee’s resolution.

Otherwise the decision by the tax appeal committee becomes final and any additional tax
assessed has to be settled.


The losses arising in any tax period can be carried forward to be offset against future taxable
profits, for a maximum period of three years.

Unutilized tax losses cannot be carried forward if a body corporate ceases activities in Kuwait
or does not generate any revenue from trade or business in Kuwait or enters liquidation or
changes its legal status or merges with another entity.

Tax losses cannot be carried back.


- Continued

DIVIDENDS

There is no withholding tax on the payment of dividends, except for dividends paid by companies listed
on the Kuwait Stock Exchange which is subject to a 15% withholding tax.

TAX RETENTION

Government authorities, ministries, public and private companies, societies, natural persons,
contractors and all other bodies/institutions in Kuwait (including foreign entities carrying out
trade or business in Kuwait) are required to retain 5% of the total contract value or 5% from
each payment made to the contracting party. This retention can be released only on receiving
a tax retention release letter from the Tax Department confirming that the retention can be
released. Entities that fail to comply with the above or to notify the Tax Department about
the subcontractors will not be allowed to claim deduction for the subcontract cost.
Additionally, such entities will be liable for paying the tax due of the body corporate that has
failed to settle its taxes.

A tax retention release letter (tax clearance letter) is issued by the Tax Department in the
following cases:

a) if an entity is not subject to tax or is exempted from tax or has incurred a loss;
b) if an entity has settled all due taxes; and
c) if an entity has submitted an approved bank guarantee or any other guarantee
acceptable to the Tax Department that guarantees settlement of tax.

DOUBLE TAX TREATIES

Kuwait has signed and ratified double taxation treaties with a number of countries. Please
contact BDO Kuwait for latest update on countries with whom Kuwait has signed and ratified
double tax treaties.

TAX HOLIDAY

Under the Foreign Direct Investment Law No. 8 of 2001, as amended, a tax holiday up to 10
years may be granted to an entity that is involved in carrying out one or more of the following
economic activities and projects:

a) Industries except the projects related to discovering and producing oil and gas.
b) Establishing, operating and managing infrastructure projects such as water,
electricity, sewage or communications.
c) Banks, investment companies and exchange companies that the Central Bank of
Kuwait has approved to be established.


- Continued

d) Insurance companies that the Ministry of Commerce and Industry agrees to
establish.
e) Information technology and software development.
f) Hospitals and medicines.
g) Road, sea and air transport.
h) Tourism, hotels and entertainment.
i) Culture, mass media and marketing except publishing newspapers, magazines
and publishing establishments.
j) Housing projects and areas development except real estate speculation.
k) Real estate investments through the foreign investor’s sharing in the Kuwaiti
public companies as per the provisions of Law no. 20 for 2000.


Other Taxes

CUSTOMS DUTIES

The six Gulf Co-operation Council (GCC) states comprising Saudi Arabia, Kuwait,
Bahrain, Qatar, Oman and UAE announced the formation of the Customs Union with
effect from 1 January 2003 eliminating customs duties for trade within GCC states as
well as removing regulations and procedures which restrict trade within GCC. The
Customs Union results in unified customs duties.

The GCC states have approved a unified customs tariff of 5% on CIF invoice price
subject to certain exceptions. Collection of customs duty takes place at the first point
of entry in the GCC. Subsequent movement of goods within the GCC states does not
attract duties. A higher tariff is imposed on imports of tobacco and its derivatives.

Each GCC member state can continue to impose protective customs duty as per the
list approved for each GCC country. If the goods covered by protection are imported
first through another GCC state in which protective duty does not apply, then that
country will levy only the normal duty of 5% and the final destination country where
the protection duty applies, will recover the balance of the duty.

A unified list of goods comprising of over 400 items such as basic foodstuffs, personal
effects and used household items has been approved by the GCC states to be exempt
from customs duties.

CONTRIBUTION TO KUWAIT FOUNDATION FOR THE ADVANCEMENT OF SCIENCES

Kuwaiti Shareholding Companies (public and closed) are required to pay 1% of their
profits after transfer to the statutory reserve and the offset of losses brought forward,
to KFAS which supports scientific progress.

NATIONAL MANPOWER SUPOORT TAX

Under Law No. 19 of 2000 relating to supporting National Manpower and
encouragement of National Manpower to work in Non-Government agencies, all
shareholding companies listed on the Kuwait Stock Exchange are required to pay a
2.5% annual tax on the net profits.


Other Taxes - Continued

ZAKAT

Kuwaiti shareholding companies (public and closed) are required to pay 1% of net
profit as Zakat.

PERSONAL TAXATION

There is currently no tax on personal income of individuals including salary income of
employees.

PROPERTY TAX

There is no property tax in Kuwait.

VAT / SALES TAX

There is no VAT or sales tax in Kuwait.

Lebanon Tax Facts 2012 32

CONTENTS

Lebanon Tax Facts 2012 33

Due to the fact that Lebanon is
changing its tax regulations, this
section will be completed in due
course.

34

OMAN
TAX FACTS 2012

BDO Audit

Suites 601 & 602
Penthouse, Beach One Bldg.
Way No. 2601, Shatti Al Qurum
PO Box. 1176, Postal Code 112,
Sultanate of Oman

Tel: +968 24649020
Fax: +968 24649030

Oman Tax Facts 2012 35

CONTENTS

40 Withholding Tax
41 Personal Income Tax
42 Social Insurance & Other Contributions
43 Other Duties and fees
44 Bi-lateral Tax Treaties



Income tax in the Sultanate of Oman has been in force since 1971 and is governed by
the Law of Income Tax on Companies of 1981. In June, 2009, a new tax law was
promulgated by Royal Decree 28/2009 which is effective from 1 January, 2010. The
new tax law provided clarity on several provisions included in old tax law and
eliminated disparity on the tax rates charged to local and non-GCC foreign
companies.

TAXABLE ENTITIES

Taxable entities that are subjected to corporate tax are; Omani proprietorships,
Omani companies and permanent establishments (pe). The term pe refers to foreign
entities (including persons) carrying out activities in Oman, either directly or through
a dependant agent. The new tax law has introduced a 90 days threshold limit of stay
in Oman applicable to a period of twelve months for creation of pe for foreign
persons engaged in activities of services. Under the new dependant agent pe concept,
the activities of a dependant agent could create a pe for the foreign principal in
certain cases.

TAX RATE AND PAYMENT

All taxable entities are subject to tax at rate of 12% on net taxable income over RO
30,000. Oil exploration and production companies are taxed under special rules
covered by concessional agreements. Foreign taxes paid abroad can be set off against
taxes due on the same income taxable in Oman. There are no advance payment
procedures, and tax due should be paid with the provisional return on estimated
taxable income and balance with final return.

The liability of the payment of tax falls on the owner of the Omani proprietorship or
the owner of the pe or an Omani company. Partners of joint ventures shall be jointly
liable for the payment due. Any tax due and not paid by the due date shall attract
additional amount of 1% per month.


Continued
TAX RETURNS

It is mandatorily required for all tax payers to register with the tax department
within three months from the date of incorporation or assuming pe status. The tax
year is the calendar year. Taxable entities are permitted to have a different tax
accounting year than the calendar year. Provisional tax returns must be filed within
three months from the end of the tax accounting year and final returns within six
months. In respect of a foreign person who carries on business in Oman through
multiple permanent establishments, a consolidated tax return should be submitted to
the tax department. The accounts are required to be prepared in accordance with
International Accounting Standards.

TAX EXEMPTIONS

 Companies and establishments established with the fundamental purpose of
industry, mining, agriculture, fishing, farming, agriculture, higher education
institutions, schools and colleges and hospitals are exempt from income tax for
a period of five years from the date of commencing production. The period of
exemption may be extended provided that such extension does not exceed a
further five years.

 Shipping companies registered in Oman are exempt from tax and foreign
shipping companies carrying on business in Oman through authorized agent are
tax exempted from the date of commencement of business on condition that
reciprocal treatment is granted.

 Income realized by foreign airlines companies carrying out their activities in
Oman through a established firm is exempt from tax. Dividends received against
investment in equity, shares, portions or stocks in the capital of any other
company established in the Sultanate of Oman.

 Profit made on sale of securities listed on Muscat Stock Exchange is fully exempt
from tax. Income earned by joint investment accounts/mutual funds registered
in Oman under the Capital Market Laws, or established overseas for dealing in
shares and securities listed on Muscat Securities Market is exempt from tax.


Continued
DEDUCTIBLE EXPENSES

Expenses are deductible if they are incurred wholly and exclusively for the purpose
of generation of gross income. Any expenses if determined by the tax department as
excessive to the related income will be disallowed to the extent of amount deemed
to be excessive.

Special rules apply to allowances, such as depreciation, bad debts, donations,
shareholders’/proprietors/director’s remuneration, rent, interest, head-office
overhead allocated to branches and agent’s/sponsorship fees.

Provisions of any nature, whether specific or general, are not allowed as deductions
for tax purposes. The tax department takes the view that a deduction will only be
allowed when the expense is actually incurred.

It is the normal practice that transactions entered directly or indirectly with related
parties are closely scrutinized by the Secretariat General and adjustments are made
in the computation of taxable income.

ASSESSMENT

All the tax returns submitted are subject to assessment within 5 years from the end
of the tax year during which the final return is submitted. The Secretariat General
can issue an assessment in the name of tax payer responsible for deduction and
remittance in the event withholding tax which is due has not been paid within the
due date.

OBJECTION AND APPEALS

The tax payer can make an objection against an assessment to the Secretary General
of Taxation, within 45 days from the date of serving the assessment order.

The assesses can also make an appeal to the Tax Committee against the decision of
the Secretary General of Taxation Affairs within 45 days of notification of the
decision issued by the Secretary General of Taxation.

The assesses may also file a tax case before any court concerned to appeal against
the decision issued by the Tax Committee.


Continued

CARRY FORWARD AND SET OFF OF LOSSES

The new tax law requires that when a foreign entity carries on businesses through
more than one pe, the loss of any of those pe for any tax year is allowed to carry
forward only after being reduced by the taxable income for that tax year of other pe
owned by that foreign entity. Losses are allowed to be carry forward for a maximum
period of five years and are offset against future profits, except the losses relating
to the first 5 years of exemption period are allowed to carry forward indefinitely
until fully utilized.


Withholding Tax

Withholding tax is a tax charged on certain specified payments accruing or arising in
Oman to foreign companies which do not have a pe or such income does not constitute
a part of the gross income of that pe. The specified payments are, a) Royalties
(Include rental of equipment), b) Consideration for research and development, c)
Consideration for the use of or right to use computer software, d) Management fees.
Royalties referred above are defined as (1) consideration for the use or right to use of
(a) intellectual or proprietary right either for artistic, literary or scientific work,
including computer software, cinematograph films, or films or tapes or discs or any
other media used for radio or television broadcasting, (b) patent, trademarks,
drawings, model and secret process or formula, (c) industrial, commercial or scientific
equipment, (2) consideration for information concerning industrial, commercial or
scientific experience, (3) consideration for granting rights to work mineral or other
sources of natural wealth.

The taxpayer who has paid or credited any of the specified payments is responsible to
deduct 10% tax from the gross amount paid or credited and the remittance should be
made to the Secretariat General not later than 14 days from the end of the month
following the month in which that amount is paid or credited, whichever is earlier.
Delay in remittance in withholding tax to the tax department shall attract 1%
additional tax per month of the tax due.


Personal Income Tax

There is no personal taxation system for income, capital gains, gifts or inheritances in
Oman and, furthermore, no requirements to file any form of tax return.


Social Insurance and
Other Contributions
SOCIAL INSURANCE
Omani employees are protected by Social Security Law. Employers are required to
register all Omani employees with the Public Authority for Social Insurance (PASI) and
make monthly contribution of 10.5% of basic salary along with 6.5% contribution by
employees (deducted from Omani employee’s salary).

END OF SERVICE BENEFIT

Expatriate employees at the completion of their employment contract are entitled to
an end of service benefit which is calculated on the following basis:

 Fifteen days basic salary for every year of service for the first three years of
continuous service;
 One month's basic salary for every year of service thereafter.


Other Duties and Fees

CUSTOM DUTY

Import of goods which originates from Non GCC countries are subject to a custom
duty of 5% of import value. Equipment imported by companies for short duration or
for the duration of the project are subject to import the equipment by paying the
custom duty as deposit and are entitled to obtain refund after re-exporting the
relevant equipment.

OTHER TAXES/DUTIES

Municipal tax is levied @ 5% on hotel income, 3% on property rents, 10% on leisure
and cinema income and 2% on electricity bills exceeding RO 50 per month. Tourism
levy of 4% and service charge of 8% are also charged on hotel income. A sewerage tax
of 10% on water consumption is levied on houses using the drainage system.

VALUE ADDED TAX

Oman has no value added tax.


Bi-lateral Tax Treaties

Oman has signed treaties for the avoidance of double taxation with the following
countries.

Algeria, Bangladesh, Belarus, Belgium, Brunei Darussalam, Canada, China, Croatia,
Egypt, France, Germany, India, Iran, Italy, Kazakhstan, Lebanon, Malta, Mauritius,
Moldova, Morocco, Netherlands, Pakistan, Russia, Seychelles, Singapore, South Africa,
South Korea, Sudan, Syria, Thailand, Tunisia, Turkey, United Kingdom, Uzbekistan,
Vietnam, Yemen.

Note: Some of the above treaties are have not been ratified or not yet in force.

Oman has also entered into treaties with several countries with respect to the
avoidance of double taxation on income generated from international air transport.

45

QATAR
TAX FACTS 2012

Gavin Brown
Partner
BDO Qatar

1st Floor, Tornado Tower
PO Box 24139, Doha
State of Qatar

Tel: +974 44999 530
Fax: +974 44999 533

Email: gavin.brown@bdo.com.qa

Qatar Tax Facts 2012 46

CONTENTS

47 Registration with Tax Authorities
49 Withholding Tax on International
Transactions


Registration with Tax
Authorities
REGISTRATION

In order to comply with the provisions of the tax law, all resident companies (Business with
Permanent Establishments) are required to register with Qatar Public Revenues and Taxes
Department (PRTD) within thirty days from the commencement of the activity; and to obtain a
tax card (which will essentially be an ID card for tax purposes). A financial penalty amounting to
QR 5,000 shall be imposed in the case of failure to register with the tax department on time. In
registering companies for tax and subsequently issuing them with a tax card, the PRTD will
require certain information from the taxpayer.

PROCEDURES

Every tax payer carrying on an activity in the State of Qatar shall submit an application from the
date of effectively of the tax law for tax payers carrying on activity at that date in accordance
with the limits, conditions and procedures provided for in the executive regulations of the tax
law.

REQUIREMENTS

The process will require: gathering all relevant information required from the tax department;
drafting and submission of the application to the department; liaising with the department and
ensuring that all enquiries are answered promptly; and following-up with the department until
the issue of the tax card.




In general, the standard rate of corporate tax is 10% flat rate applied to the company’s net
taxable profits starting from the beginning of January 2010.



first year is to start from the date of incorporation to the end of the following financial year (the
financial period should not exceed 18 months).

DEDUCTIBLE EXPENSES

documents.


A company’s taxable income is based on its accounting profits, computed according to the
International Financial Reporting Standards.

FILING REQUIREMENTS

financial statements), within four months from the accounting year end, e.g. 30 April, for 31
December year-end.


Losses are carried forward for deduction from subsequent profits for up to five years.

DIVIDENDS

There is no withholding tax on the payment of dividends, whether the recipient is resident or
non-resident.


Withholding Tax on
International Transactions
BASIS OF TAXATION

The new tax law has been applied from the beginning of year 2010 and it introduced a
requirement to operate withholding tax on certain payments to foreign companies which are not
resident or do not have a Permanent Establishment in Qatar. The obligation to deduct
withholding tax applies to all businesses operating in Qatar regardless of whether they are 100%
Qatari owned or partly foreign owned. (There is no exemption)

RATES OF WITHHOLDING TAX

Under the new law, businesses in Qatar must deduct withholding tax at the rate of 5% on
payments of royalties and technical fees, and at the rate of 7% on payments of managerial,
consultancy fees, directors’ fees, attendance fees and any other payments to non-residents for
services carried out wholly or partly in Qatar. Payments for a pure supply of goods are not
subject to withholding tax however if there is a service element involved, this portion would be
subject to withholding tax.

FILING REQUIREMENTS

Businesses which deduct withholding tax from payments made to non-residents are required to
remit this to the Tax Department by the 14th day of the month following the month in which the
payment was made.

Detailed letter will need to be provided to the tax department along with the payment and the
payer will also need to issue a receipt to each of the parties from whom it deducted the
withholding tax.

Failure to deduct the withholding tax and remit it to the tax department by the specified date
will result in a penalty for the entity equal to the amount of the withholding tax. This is in
addition to payment of the withholding tax itself.

50

SAUDI ARABIA
TAX FACTS 2012

BDO Dr. Mohamed Al-Amri & Co.

P.O.Box.: 8736,
Riyadh 11492

Tel: +966 1 278 0608
Fax: +966 1 278 2883

Email: info@alamri.com
www.alamri.com

Saudi Arabia Tax Facts 2012 51

CONTENTS

52 Zakat
53 Income Tax
56 Withholding tax
57 Other Taxes
58 Social Insurance


Zakat

RATES OF ZAKAT

Zakat is a religious tax, levied on Saudi nationals, wholly Saudi-owned companies and the Saudi
shareholders’ share of profits of companies with foreign participation, in accordance with Islamic
law "SHARIA". For this purpose, GCC nationals and companies are treated as Saudis. Zakat is
payable annually on the higher of Adjusted Net Income or Zakat base (which is calculated in
general on the net worth). The rate of Zakat is 2.5%.

ZAKAT YEAR
The rate of Zakat is fixed in respect of the corporate financial year.

DEDUCTIBLE EXPENSES

The general rule is that all actual expenses are deductible for Zakat calculation purposes. The
cost and expenses have to be supported by proper documents.


Zakat is payable annually on the Zakat payer's total capital resources and income, excluding
amounts invested in fixed assets. The rate of Zakat is 2.5%.

FILING REQUIREMENTS
Zakat return must be filed within 120 days from the accounting year end, e.g. 30 April, for 31
December year end.


Where Zakat is calculated on the Zakat Base (net worth), losses are carried forward as part of
the equity. Where Zakat is calculated on net Zakat adjusted income no offsetting of losses are
allowed.


Income Tax

REGISTRATION

In the Kingdom of Saudi Arabia every person subject to tax shall register with the Department of
Zakat and Income Tax before the end of its first fiscal year.

RATES OF INCOME TAX

A 20% income tax rate is applicable to the taxable income of non-Saudi individuals in business,
companies registered in Saudi Arabia, and non-resident individuals and companies carrying
business activities through a permanent place of business in the Kingdom. Income includes all
income, profits, gains of any type and of any form of payment resulted from carrying out
activity, including capital gains and any incidental income.

A Natural Gas Investment Tax (NGIT) is applicable on any person, natural or corporate, Saudi or
non-Saudi, taxable income derived from exploration, production, collection, treatment,
transportation, processing and fractionation of natural gas, natural gas liquids and gas
condensates. The NGIT rate for any taxable year is determined based on the internal rate of
return on the cumulative annual cash flows of the taxpayer from the natural gas investment
activities. Based on the NGIT rates table, the NGIT rate can range from a minimum of 30% for an
internal rate of return of 8% to a maximum of 85% for internal rates of return of 20% and above.

A tax rate of 85% is applicable to the taxable income from oil or other hydrocarbon production
activity in the Kingdom.

EXEMPT INCOME

The following income types are exempt from income tax:

a) capital gains realized from disposal of securities traded in the Stock Market in the
Kingdom in accordance with controls specified in the By-law.
b) gains on the disposal of property other than assets used in the activity.



first and last year should be a short period unless otherwise is agreed with the tax authority.


Income Tax - Continued

DEDUCTIBLE EXPENSES

documents.

CAPITAL GAIN

Capital gain derived from disposal of fixed and traded assets, or from disposal of shares in a
resident company is subject to tax at 20%.

The following incomes are exempt from income tax:
(a) Capital gains realized from disposal of securities traded in the Stock Market in the Kingdom in
accordance with controls specified in the By-law.
(b) gains on the disposal of property other than assets used in the activity.


A company’s taxable income is based on its accounting profits, computed according to the Saudi
Accounting Standards, which is, to a great extent, compliant with the International Financial
Reporting Standards (IFRS).

Certain adjustments are required to be made to the accounting profit to arrive at taxable
income.

FILING REQUIREMENTS

financial statements), within 120 days from the accounting year end, e.g. 30 April, for 31
December year end.

Partners in a partnership and professionals must submit their tax return within 60 days from the
accounting year end.


Income Tax - Continued

CARRY FORWARD AND OFFSET OF LOSSES

Losses are allowed to be offset equal to 25% of tax adjusted net income for the year. Losses can
be carried forward indefinitely.

In case of a change of fifty percent (50%) or more in the ownership or control of a company, the
share of a non-Saudi may not be deducted in losses incurred prior to the change in taxable years
following the change.

Rules for Advance Payment of taxation

Tax has to be paid in advance where previous year tax obligation is SR 2 million or more. In such
case advance tax will be 25% of previous year tax obligation and has to be paid prior to the last
date of sixth, ninth and twelfth month.

DZIT has the power to reduce the amount of advance tax where the income for the year drops
by 30%.


Withholding Tax

Payments made to non-residents by a resident or a permanent establishment of a non resident,
that are from a source in the Kingdom, are subject to withholding tax. Depending upon the
nature of payment, the payer is required to withhold the tax at the following rates:

Tax Rate
%
Management fees 20
Royalties, payments to head office or related parties for
15
services
Dividends, loan charges, insurance/reinsurance
premiums, rental (lease), technical and consulting
5
services, air tickets, air freight, shipping, and
international telecommunication services
Other payments – Not to exceed 15

Technical and consulting services are deemed to be from a Saudi source even if they were
performed outside the country. The person withholding the tax, irrespective of whether or not
he is a taxpayer under the tax law, is required to register with the DZIT, and pay the tax so
withheld within 10 days after the end of the month in which such payments are made. The payer
is also required to issue a certificate to the payee stating the amount of payment and the tax
withheld.

At the end of each tax year, the payer is required to submit the names, addresses and other
details of the payees to the DZIT no later than 120 days of the end of the fiscal year, and not
later than 60 days of the end of the fiscal year for partnerships.

Withholding tax is payable upon payment or deemed payment (clearance or settlement of
accounts). The date of settlement is considered to be the date of payment unless the settlement
is between related parties in which case it is the date of book entry.

A delay penalty of 1% of the amount of unpaid withholding tax is applicable for each 30 days of
delay from the due date of the tax till such time the tax is paid.


Other Taxes

At present the following taxes are not imposed in the Kingdom:

 Personal tax on employee's remuneration
 Value-added tax
 Withholding tax of local transactions
 Estate and gift taxes


Social Insurance

Social insurance in the Kingdom is administered by the General Organization for Social Insurance.
Employers are required to make contribution for Saudi employees who are required to
contribute the same percentage of their salary in respect of social insurance. In addition,
employers are required to contribute 2% of the basic salary of both Saudi and non-Saudi
employees to cover the job hazards risk.

Certain categories of employees such as certain government employees, armed forces and
diplomatic personnel, domestic servants etc are exempt from social insurance contributions

SOCIAL INSURANCE RATE

The rate of Social Insurance is as follows, showing the employer and employees’ portions:

Employer Employee
Amount
% %
Gross salary of Saudi employees
9 9
(including benefits in kind)
Basic salary of both Saudi and non-
2 -
Saudi employees

59

U.A.E.
TAX FACTS 2012

BDO Chartered Accountants & Advisors

Suite 305,
Al Futtaim Tower
Al Maktoum Street,
Deira
P.O. Box- 1961, Dubai

Tel: +971 4-222 2869/ 228 5077
Fax: +971 4-227 4867/2270151

Email: priyesh.kapadia@bdo.ae

U.A.E. Tax Facts 2012 60

CONTENTS

62 Salary Tax
63 Social Insurance
64 Sales Tax & Indirect Taxes
65 Stamp Tax
66 Withholding Tax on Local Transactions
67 Capital Gain Tax
68 Tax Treaties



There are decrees issued by each Emirate covering corporate tax and levying up to
55% based on the income slabs, but their enforcement has been limited to foreign
banks and foreign oil companies only and there is no corporate tax for other entities
registered in UAE, Further, entities registered in the Free Zone are exempted from
tax for 25- 50 years as concession that is renewable.

 Foreign banks have been paying a 20% tax on net profits of each of their
branches in the UAE and for foreign oil companies the amount of tax paid by
an oil company is based on a rate agreed in an individual concession between
the oil company and the respective Emirate.

There is no corporate tax for other entities registered in UAE. Hence, there is no tax
related filing obligations for the companies registered in the UAE other then foreign
banks & oil companies.

DEDUCTIBLE EXPENSES

The general rule is that only expenses that are wholly and exclusively incurred in
earning the income of the business are deductible. The cost and expenses have to be
supported by proper documents. However as there is no corporate tax in the UAE, the
significance of deductable expanses is limited.

There are no Local Accounting Standards in place and to a great extent the
International Accounting Standard (IAS & International Financial Reporting Standards
(IFRS) are being followed in the UAE.
FILING REQUIREMENTS
There is no tax related filing obligations for the entities registered in the UAE other
then foreign banks & oil companies.

DIVIDENDS
There is no withholding tax on the payment of dividends.
PAYMENT TO NON-RESIDENTS
Since there are no withholding taxes in the UAE and there are no restrictions in
transferring funds into or outside the UAE or payment to non-residents.


Salary Tax

TAXATION
Individuals are not taxed in the United Arab Emirates; hence there are no taxes
on salary income or personal income.


Social Insurance

Dubai does not have obligatory state or employer-contribution insurance
schemes.

Nationals are automatically provided with extensive state help, including medical
care, sickness and maternity cover, child care, pensions, unemployment benefit
and in some instances housing and disability benefits.

Foreign workers have access to medical facilities, but too little else. Private
medical insurance is recommended for most foreigners.
PENSIONS

There are no state pension schemes in UAE for foreign expatriates.

There are pension schemes for UAE nationals, which are covered under Law No 2
of 2000. The law defines salary for each of sector of entity. Contributions must
be deducted from the salary.

The contribution total is 26% comprised as follows:

From the employee - 5%
From the employer - 15%
From Government - 6%

The employer is responsible for collecting its and its employee’s contributions
and remitting them to the pension fund. The Government pays its contribution as
a separate issue directly to the pension fund.

- Central Auditing Bureau - for auditing Governmental bodies and public sector
entities
- Central Bank of Egypt - for bank audits
- Egyptian Financial Supervisory Authority - for public quoted companies, and
all non-banking financial institutions.

The services we provide include:

- - Statutory audits
- - Special purpose audits
- - Internal audits
- Internal control review


Sales Tax & Indirect
Taxes
There are no Sales taxes or VAT (Value Added Tax) in the UAE, but individual
Emirates may charge levies certain services such as those provided in the
hospitality industry.

 Municipal taxes are charged in some of the Emirates. In Dubai a 10% municipal tax is
charged on hotel revenues and entertainment.
 In all the Emirates, except Abu Dhabi, Income from renting commercial premises is taxed
at a rate of 10%, from renting residential premises at a rate of 5%. Abu Dhabi does not
levy a municipality tax on rented premises, but landlords are required to pay certain
annual license fees.

TAXES ON INPUT

For goods, There are no Sales taxes or VAT (Value Added Tax) in the UAE,
therefore there is applicability of taxes on inputs (Goods).

For services, There are no Sales taxes or VAT (Value Added Tax) in the UAE,
therefore there is applicability of taxes on inputs (Services).
INVOICES DETAILS

There is no specification with regards to Invoice formats; however the standard
documentation will apply for invoices for import & export purposes.

EXPORTED & IMPORTED GOODS

Customs duty is levied at 5% on imports & exports of majority of products
except tobacco & alcoholic beverages which are subject to duty at higher
rates.
BASIS OF TAXATION

It is not applicable in the UAE.


Stamp Tax

There is no stamp duty. However, there are various fixed transaction charges for
processing of visa, work permit, notarization, vehicle registration and other
services from Government departments

FILING REQUIREMENTS

As stamp duty is not applicable in the UAE, therefore there is no filing
requirement of the same.


Withholding Tax on Local
Transactions
TAXATION

There are no withholding taxes in the UAE

WITHHOLDING TAX

Dividends Nil
Interest Nil
Royalties Nil
Branch Remittance Tax Nil

FILING REQUIREMENTS

There are no filling requirements.


Capital Gain Tax

TAXATION

There are no capital gain taxes in the UAE.

FILING REQUIREMENTS

There are no filling requirements.


Tax Treaties

The UAE is a leading country with regards to agreements to avoid double taxation.
These agreements bring about a positive impact on investment promotion, economic
cooperation and trade between the UAE and other countries. The UAE has an
extensive and growing list of double tax treaties, which are currently more than 50
countries.

The BDO network in Middle East countries:

BAHRAIN – EGYPT – KUWAIT – LEBANON – OMAN
QATAR - SAUDI ARABIA – U.A.E.

BDO Middle East Firms are independent firms registered in respective countries.
The term ‘partner’ is used to refer to our members and employees with an
equivalent standing and qualification to one of our affiliated undertakings.

BDO Middle East firms are members of BDO International Limited, a UK company
limited by guarantee, and forms part of the International BDO network of
independent member firms.

BDO is the brand name for the BDO network and for each of the BDO member
firms
Copyright ©2011 BDO International
All rights reserved
www.bdointernational.com

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