Transfer pricing should be top of agenda for all tax executives in 2018

30 May, 2018 – Deloitte has just issued its 2018 edition of the Middle East Tax handbook. The handbook is a comprehensive guide to help businesses keep abreast of the Middle East tax rates and to guide businesses through the important changes to tax regimes across the Middle East region.

Changes in regulation and tax reform continue to be on the increase in the Middle East, and include the implementation of a value added tax (VAT) regime that commenced in the Kingdom of Saudi Arabia (KSA) and United Arab Emirates (UAE) on January 1, 2018. As a transactional tax, the introduction of VAT poses a real challenge for KSA and UAE businesses, especially with the significant impact it has across their entire operations. During the ensuing period it is anticipated that the remaining four GCC member states will each proceed with their respective plans, and domestic laws, to implement a VAT in accordance with the Treaty by 2019. The existence of the Treaty as a core set of principals provides GCC businesses with enough direction to commence their implementation even though the respective domestic VAT laws are not, at time of writing, yet available.  

“The Deloitte Middle East Tax practice is committed to providing businesses with the clarity, connection and confidence that they need in order to navigate the ever evolving tax landscape. To this aim, we are continuously deploying tax academies and conferences, learning materials in addition to innovative platforms and tools such as the Deloitte “tax@hand” and “VAT in the GCC Guide” mobile applications," explains Nauman Ahmed, Partner and Tax Leader at Deloitte Middle East.

With the issuance of the final recommendations of the Organization for Economic Co-operation and Development (OECD) on the 15 Base Erosion and Profit Shifting (BEPS) action items, the importance of transfer pricing has further increased as it dominates the BEPS agenda for taxpayers and tax authorities across the world. Following the global trend, many countries across the Middle East have also committed to introduce BEPS recommendations in domestic legislation, which is likely to further sharpen the focus on transfer pricing in the region.

“In 2018, transfer pricing should be at the top of the agenda for all tax executives. We are at a time when everything defining the global and local tax landscape of the past is shifting and yielding a fundamentally different future – compounded by increased scrutiny from revenue authorities and the media. This intensifies the spotlight on tax leaders and professionals,” said Alex Law, International and M&A Tax Leader at Deloitte Middle East.

“We want to gain a deeper understanding of challenging issues facing your business and want to help you to be confident and embrace innovation, leading in the midst of uncertainty. This is how we will find more efficient ways to meet the ever-expanding needs of today, tackle tomorrow’s challenges, and add value.”

To view the whole report, click here.

About Deloitte:

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms and their related entities are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities.

About Deloitte & Touche (M.E.):

Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926. DTME’s presence in the Middle East region is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DTME’s affiliates and related entities cannot oblige each other and/or DTME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable only for its own acts or omissions and not those of any other affiliate.

Deloitte provides audit, tax, consulting, financial advisory and risk advisory services through 25 offices in 14 countries with more than 3,300 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has also received numerous awards in the last few years, which include bestAdvisory and Consultancy Firm of the Year 2016 in the CFO Middle East awards, best employer in the Middle East, the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.