Taxation in the Gulf takes the first remedy has been saved
Taxation in the Gulf takes the first remedy
ME PoV Spring 2010 issue
The replacing of decades-old laws by modern principles is a positive step. But is it enough? The simple answer is no.
Governments in the Gulf States have been astir with the introduction of new tax laws in the last few years, leading to a welcome and sharp reduction in the tax rate: from 55% in some countries, such as Kuwait, to as low as 10% in others, such as Qatar.
A decision by Saudi Arabia to replace its decades-old law with a more modern tax law sparked a tax rates competition in the region. Following in Saudi Arabia’s footsteps, Kuwait introduced its own law, reducing its tax rate to 15%. Oman followed suit and reduced its rate to 12% and finally Qatar, which had been reviewing its tax laws for quite some time finally ratified them and reduced their taxes to 10%.