1989 - 2018 29 years in business Sunday, 22nd July 2018

GCC Adopts Draft VAT Agreement : Report


Dear Clients, 

 

Officials from the member states of the Gulf Cooperation Council, (GCC) have concluded a

Draft agreement on implementing a GCC wide value-added tax.

 

The agreement was reached at the 100th meeting of the GCC Financial and Economic

Cooperation Committee ( FECC) in Doha.

 

Kuwaiti Finance Minister Anas Al-Saleh, was quoted by the Kuwait News Agency (KUNA)

As saying that the draft agreement provides that each GCC state will be allowed to introduce

Their own VAT regimes, providing that common principals are adopted by all GCC members

Bahrain, Kuwait, Oman,Qatar,Saudia Arabia, and the United Arab Emirates (UAE).

 

Countries in the gulf are currently seeking ways to diversify their revenue sources to offset

Failing revenues from low oil prices, as recommended by the International Monetary Fund.

(IMF).

 

Earlier this month the IMF released a report reviewing the VAT regimes adopted by countries

In the Middle East and North Africa (MENA) region. The report noted that standard VAT rates

Have increased in all MENA countries, as have the number of rates levied (Except in Algeria)

As of 2013, the most recent year covered by the study, VAT rates in MENA countries ranged

From 5 percent to 20 percent. It said the recent decline in oil prices and revenues is a reminder

That even resource-rich GCC countries need to lay the basis of  a tax system for the future.

 

A pan-GCC VAT has been discussed for more than a decade, but negotiations have stalled in

Recent years, It is anticipated that a GCC VAT would feature either a three or five percent

Headline rate.

 

Should you require any further clarification, please do not hesitate to contact us at:

info@cardwell-capital.com

 

Kind Regards

Cardwell Advisory Desk

 
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