The business of… Tax in the GCC
From corporate income tax in Saudi Arabia to social security tax in Kuwait, Kipp takes a look at how the citizens of the Gulf are taxed.
September 9, 2010 2:17 by kippreport
CORPORATE INCOME TAX
- Applies to all foreign firms. For a joint venture, the tax liability depends on the foreign company’s share. Capital gains are subject to tax or zakat (religious) money.
- The tax rate is 20 percent of tax adjusted profits, and withholding tax rates are between 5 and 20 percent. The income tax rate on taxable net income of foreign shareholders is 20 percent. Only non-Saudi investors are liable for income tax.
SOCIAL INSURANCE TAX
- Paid monthly based on the salary plus housing. For Saudi employees, the rate is 20 percent, and 2 percent for non-Saudi employees.
- There is currently no value-added tax (VAT) system.
Goodbye Dubai Media City parking lot, hello building
Top 5 things to do this weekend in the UAE
What do you do on your weekend?
Abu Dhabi to get world's first UEFA concept store
Dubai house prices to fall 10 per cent in 2015 – JLL