Many accountants in Saudi Arabia are in favour of providing tax incentives to help entrepreneurs move forward after suffering from the impact of the coronavirus pandemic, according to a new survey. 

The survey, which covered 8,000 respondents in the kingdom, New Zealand and other G20 countries,  found that two-thirds (66 percent) were “strongly in favour” of using the “tax systems” to help small businesses and individuals recover from the effects of COVID-19. 

The study by the Association of Chartered Certified Accountants (ACCA), Chartered Accountants Australia and New Zealand (CA ANZ) and the International Federation of Accountants (IFA) was carried out in the first quarter of 2021. It follows two previous tax-related reports in 2017 and 2019. 

Key findings 

The latest research also found that 66 percent of the respondents believe that tax incentives would be appropriate to support efforts that tackle global concerns, such as climate change and retirement savings.  

“Tax policies to help address challenges such as climate change and ageing populations are no longer issues on the horizon, it’s here and now. Well-functioning tax systems and high levels of taxpayer trust backed by a robust account profession to design, implement and navigate the tax implications are vital as we look to shape a better future,” said Ainslie van Onselen, chief executive of CA ANZ. 

Other key findings of the study included insights on whether taxpayers in different countries felt they were paying a reasonable amount of tax. 

In Saudi Arabia, 50 percent said they believe that high-income individuals in the kingdom paid a reasonable amount of tax, which is more than double the percentage paid across the G20 markets. 

More than half (54 percent) also agreed that local Saudi-based companies paid a reasonable amount of tax, while 57 percent thought this was the case for multinational companies.  

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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© ZAWYA 2021