NelsonHall recognizes Mercans as leader in payroll services. Free Report
Jan 19, 2016 2 min read

GCC Countries, including UAE, align policies for the quick introduction of a Value Added Tax (VAT)

The Gulf Cooperation Council countries are currently coordinating their tax policy with the aim to introduce a value-added tax (VAT) as soon as possible.

According to Younis Haji Al Khoori, Undersecretary at the Emirates’ Ministry of Finance, the introduction will begin as soon as any two GCC member states are ready to go.

The expected VAT rate is 3-5% with an exception for healthcare, education and a select 94 food items.

In last week’s issue of the Economist, Deputy Crown Prince Mohammed bin Salman bin Abdelaziz of Saudi Arabia already spoke about VAT, but stressed that there would be no income and wealth taxes. At the same time, the UAE Ministry of Finance are still considering the introduction of a corporate tax.

This is a significant move of the GCC countries and the Middle East towards a more complex taxation system – which won’t leave you unaffected if you do business in this region.

Any introduction of a new tax comes with difficulties. Misunderstandings, errors, compliance issues, dealing with unfamiliar legislation – In fact, in this case the overall concept of the new tax is completely foreign to the region.

Which means that to you, it is ever more important to make absolutely sure you can cope with the change. You may run your own accounting and payroll staff, or you may outsource – in any case you’ll need reliable information, and experts who know what they’re doing.

Again, I’m biased. But at Mercans, we’re familiar with every single one of the possible new introductions. Our people have worked in markets where VAT has been a reality for decades, and they know very well what it affects, and how such a system works.

If you’re sure you can cope, ignore this – but if you’re not, why not drop us a line? We’d be glad to give you an idea how the change will affect your business and help you set up everything to stay compliant with new laws and regulations.

Most viewed posts

View all posts

NelsonHall names Mercans as Global Payroll Technology Leader

Top business process services (BPS) and IT services (ITS) research and analysis firm recognised Mercans as a payroll tech leader

Sep 20, 2022 3 min read

Singapore – Social Security Rate Change

CPF contributions for individual aged 55 to 70 and who earn less than 750 Singapore dollars per month will increase effective from January 2023.

Sep 15, 2022 1 min read

Lebanon – Transportation Allowance Modification

On 12 August 2022, the President of the Republic of Lebanon signed Decree 9849 which modified the daily transportation allowance as per below: Each day of actual attendance at the work premises will be remunerated at a rate of 95,000 LBP for pri

Sep 1, 2022 1 min read

Client success story: International SOS

International SOS achieved sustainable global payroll process optimization through transitioning away from a legacy provider down to a single payroll management system

Aug 1, 2022 3 min read

Client success story: Kratos

Global payroll solution that complies with US Government contracting requirements

Jul 18, 2022 3 min read

Payroll Technology Firm Mercans Appoints Andre Voolaid to its Board

Andre’s appointment to the board demonstrates Mercans’ vision of becoming the global payroll technology leader.

Jul 18, 2022 2 min read