Liberal leaders say they have a plan for a new, more effective anti-Trump resistance    Stampedes at Christmas charity events kill 67 people in Nigeria    A man's suicide leads to clamor around India's dowry law    Slovak PM meets Putin in surprise Moscow visit    Environment minister inaugurates Yanbu Grain Handling Terminal    Saudi deputy FM meets Sudan's Sovereign Council chief in Port Sudan    Kuwait, India to elevate bilateral relations to strategic partnership Sheikh Mishal awards Mubarak Al-Kabir Medal to Modi    MoH to penalize 5 health practitioners for professional violations    Al-Samaani: Saudi Arabia to work soon on a comprehensive review of the legal system    Arabian Gulf Cup begins with dramatic draws and a breathtaking ceremony in Kuwait    GACA report: 928 complaints filed by passengers against airlines in November    Riyadh Season 5 draws record number of over 12 million visitors    Fury vs. Usyk: Anticipation builds ahead of Riyadh's boxing showdown    Saudi Arabia to compete in 2025 and 2027 CONCACAF Gold Cup tournaments    Marianne Jean-Baptiste on Oscars buzz for playing 'difficult' woman    PDC collaboration with MEDLOG Saudi to introduce new cold storage facilities in King Abdullah Port Investment of SR300 million to enhance logistics capabilities in Saudi Arabia    Al Shabab announces departure of coach Vítor Pereira    My kids saw my pain on set, says Angelina Jolie    Legendary Indian tabla player Zakir Hussain dies at 73    Eminem sets Riyadh ablaze with unforgettable debut at MDLBEAST Soundstorm    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi Arabia third in global ranking for ease of tax payment
Published in The Saudi Gazette on 17 - 01 - 2016

Saudi Arabia maintains its third position in the global ranking for ease of tax payment, the latest release of the Paying Taxes report by The World Bank and PwC said.
With the least demanding tax framework, well below the world average, the Kingdom has a total tax rate of 15.0%, an average number of three payments and an average time to comply of 64 hours. The report analyzed the same factors in 189 countries, with global averages of 40.8% total tax rate, 25.6 number of payments, and 261 hours for time to comply.
Despite a small increase in the total tax rate since the previous year, the Middle East region as a whole is the easiest region in which to pay tax. It has the lowest total tax rate and time to comply, and all of the sub-indicators have been stable since 2004.
The Paying Taxes 2016 report finds that labor taxes and mandatory contributions paid by employers account for 59% of the average total tax rate for the region and is the most significant contributor to the total tax rate in most economies. Profit taxes account for 39% while other taxes account for just 2% of the region's average total tax rate.
"The annual report is a powerful index in shaping discussion on tax reform and fiscal policies for many governments. The latest findings from the study reveal that while the region remains the easiest to pay taxes, the implementation of the VAT will bring a portfolio of new discussions to tax reform," said Dean Kern, Partner, PwC's Middle East Tax and Legal Services Leader.
Commenting on Saudi Arabia's position, Mohamad Yaghmour's PwC Saudi Arabia Zakat and Tax Leader, said "maintaining this position is a testament to what the Saudi government is achieving. The department of Zakat and Income Taxes (DZIT) in Saudi Arabia has taken a series of steps to ensure quantum leap in e-government services, as an attempt to develop and modernize the DZIT system and move away from manual processes." In 2014 DZIT signed an agreement with an IT solutions company to set up and implement Tax and Revenue Management System. The aim is to facilitate the whole of the taxpayer's process with DZIT through an electronic portal in order to process revenue verification and promptly raise any outstanding tax liability to reduce delays in the payment of zakat and tax."
As a first step, DZIT initiated online zakat filing in 2013 which was strictly enforced from 2014 and onwards. In 2014, withholding tax filing was made online to streamline and auto update the taxpayer's records with the DZIT. Registering for tax/zakat number has also been made online. The DZIT is in the process to prepare platform for e-tax filing for 100% taxpayer companies and mixed entities (i.e. which pay zakat as well as tax).
According to the report, by 2014 84 economies had fully implemented electronic filing and payment of taxes. In 2005, the earliest year for which we have data, only 46 economies had such a system. Economies which have invested in online filing and payment infrastructure are reaping a digital dividend from these systems.
On the other hand, the recent discussions on the implementation of VAT in the GCC will transform the tax system in Saudi Arabia. Although VAT will be adopted at a GCC level, it will be applied at a national level.
Jeanine Daou, Partner and Middle East Leader for Indirect Taxes and Fiscal Policy, said: "the Paying Taxes report helps inform the discussion around tax reform, a topic that is currently extremely relevant in the GCC.
Governments must now make decisions concerning key elements in the system, including the simplification and harmonization of the compliance requirements as well as the extent to which VAT is deductible to remain neutral for businesses."
She added that "Saudi Arabia and GCC governments will have to make strategic decisions on the harmonization of the VAT in the GCC.
Harmonization is needed to make the system fully efficient and compatible with the requirements of a true common GCC market that promotes cross border activities, reducing VAT compliance costs for GCC businesses and contributing significantly to increasing the competitiveness of GCC companies. Non-harmonization may lead to double taxation or non-taxation within the GCC which creates opportunities for abusive schemes.
Non-harmonization may also impact competitiveness between the GCC states where specific sectors are not subject to the same VAT treatment leading to businesses establishing in more favorable jurisdictions." — SG


Clic here to read the story from its source.