24 Nov 2016 

The Middle East region has the least demanding tax system, ranking consistently below the world average according to the latest edition of Paying Taxes 2017, a report by PwC and The World Bank Group noted yesterday. This year the Middle East region has both the lowest average total tax rate and the lowest average time to comply of all the regions.

The Qatar case study company has an average total tax rate of 11.3 percent; it takes the company an average of 41 hours to comply with its tax affairs and it makes an average of 4 payments.

In the Middle East example the case study company has an average total tax tate of 24.2 percnet; it takes the company an average of 157 hours to comply with its tax affairs and it makes an average of 17.1 payments.

Neil O’brien, Head of Tax at PwC Qatar said: "Qatar continues to provide a very competitive and efficient tax system in support of its objective to broaden its non oil and gas economy. In addition to providing an extremely competitive tax rate for business, Qatar has recently invested into its tax administration with the introduction of online filing for corporate income taxes and withholding taxes. Further investment is expected into Qatar's tax administration to streamline post-filing processes, tax refund claims and the anticipated introduction of a VAT regime."

Dean Kern, PwC Middle East Tax and Legal Services Leader said: “We recognise the pressures on governments across the region to raise tax revenues to fund public spending. Paying Taxes has shown that in many economies, governments and tax authorities can make it easier for companies to pay their taxes and this includes the ability to claim a refund or deal with a corporate income tax audit. More efficient tax systems are good for businesses which in turn helps to promote economic growth.

© The Peninsula 2016