Lexis Middle East Gulf Tax – Winter 2024 Edition

09/12/202409/12/2024
by Hannah Gutang

The latest edition of Lexis Middle East Gulf Tax magazine provides a comprehensive overview of the evolving tax landscape in the GCC region. The magazine delves into the OECD’s Pillar Two or Global Anti Base Erosion Rules, highlighting the challenges multinational enterprises face due to varying approaches by different jurisdictions, particularly in the GCC. Bahrain stands out as the first GCC country to enact a Domestic Minimum Top-Up Tax, with implementation set for January 2025.

The issue also explores the implications of recent changes in VAT treatment for Investment Fund Management Services and provides a round-up of key tax treaty developments and regulatory changes in the region.

Additionally, it discusses potential tax reforms in Oman and Kuwait, and features insights from tax professionals on the rapid pace of legislative changes in the GCC. The magazine concludes with an examination of new details on disputing tax assessments and penalties in the UAE.

FEATURE: PILLAR TWO: WHAT NOW?

Bahrain is the pioneering GCC country to introduce a Domestic Minimum Top-Up Tax. Shashank Chandak of KPMG analyses the current positions of Bahrain and other GCC nations on Pillar Two.

FEATURE: INVESTMENT APPROACHES

With recent changes to the VAT treatment of Investment Fund Management Services, Markus Susilo of Crowe analyses the general differences in tax treatment for Investment Management Services and investment funds.

TAX NEWS ROUND-UP

This round-up highlights the latest significant changes in tax agreements and regulatory updates throughout the region, offering readers a thorough understanding of the current developments.

PRACTICAL FOCUS: TAX REFORM IN OMAN AND KUWAIT

Rami Alhadhrami, a Tax Partner at BDO Kuwait, and Asrujit Mandal, a Tax Advisor in Oman, discuss the potential tax system reforms in Oman and Kuwait, focusing on changes to income and profit taxation.

TAX PROFESSIONAL PROFILE

According to Asrujit Mandal, Tax Partner at BDO LLC for Oman and Bahrain, the rapid pace of change in tax legislation poses the greatest challenge for businesses in the GCC.

ANY QUESTIONS?

Tina Hsieh of Baker McKenzie delves into the recent updates from the FTA concerning the procedures for challenging tax assessments and administrative penalties in the UAE.

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