30 October 2011
MUSCAT: Ashok Hariharan, partner and head of Tax for Lower Gulf of KPMG, noted that the tax rates in the Middle East and the Gulf Cooperation Council (GCC) region has fallen over the last few years and were favourably positioned compared to tax rates globally.
He further noted that the Gulf countries have been discussing and debating the possibility of introducing value added tax (VAT) in the GCC and current indications were that the VAT implementation is unlikely before 2014.
Further, the findings of KPMG International's annual Corporate and Indirect Tax Survey for 2011, reflect a continuation of the message of previous years. The corporate tax rates have been steadily falling for a decade, whilst value added tax and goods and services tax (VAT/GST) systems have been introduced across the globe, rising to higher rates and applying to more items as indirect tax systems mature.
"Some commentators have wondered if these dual trends were temporary anomalies that would reverse over time," says Wilbert Kannekens, KPMG's global head of International Corporate Tax.
"Based on our reading of this year's survey results, the chance of a return to the pre-2000 status quo is remote and the global re-balancing of corporate and indirect taxes will continue.
International businesses should ensure they have the right mix of income tax and VAT/GST management resources in place to stay ahead of this long-term trend."
According to the KPMG survey, the world's average corporate tax rate has fallen in each of the past 11 years.
MUSCAT: Ashok Hariharan, partner and head of Tax for Lower Gulf of KPMG, noted that the tax rates in the Middle East and the Gulf Cooperation Council (GCC) region has fallen over the last few years and were favourably positioned compared to tax rates globally.
He further noted that the Gulf countries have been discussing and debating the possibility of introducing value added tax (VAT) in the GCC and current indications were that the VAT implementation is unlikely before 2014.
Further, the findings of KPMG International's annual Corporate and Indirect Tax Survey for 2011, reflect a continuation of the message of previous years. The corporate tax rates have been steadily falling for a decade, whilst value added tax and goods and services tax (VAT/GST) systems have been introduced across the globe, rising to higher rates and applying to more items as indirect tax systems mature.
"Some commentators have wondered if these dual trends were temporary anomalies that would reverse over time," says Wilbert Kannekens, KPMG's global head of International Corporate Tax.
"Based on our reading of this year's survey results, the chance of a return to the pre-2000 status quo is remote and the global re-balancing of corporate and indirect taxes will continue.
International businesses should ensure they have the right mix of income tax and VAT/GST management resources in place to stay ahead of this long-term trend."
According to the KPMG survey, the world's average corporate tax rate has fallen in each of the past 11 years.
© Times of Oman 2011
