Documente Academic
Documente Profesional
Documente Cultură
CONTENTS
3 11 21 31 34 45 50 59
BDO Public Accountants 10th & 11th Floors GBCORP Tower Bahrain Financial Harbour PO Box. 787 Manama, Kingdom of Bahrain Tel: +973 17 530 077 Fax: +973 17 530 088 Email: info@bdo.bh www.bdo.bh
CONTENTS
05 06 07 08 09 10 Corporate Income Tax Personal Income Tax Social Insurance Withholding Tax Other Duties and Fees Bi-lateral Tax Treaties
If an employee leaves the services of the employer within 3 years then no end of service benefit is payable to the employee. However if an employee leaves the services after 3 years but less than 5 years, then the number of days entitlement is one-third of the total days calculated based on the above. However if the employer terminates the services of an employee, then full end of service benefit is paid to him, irrespective of the number of years of employment with the employer.
Withholding Tax
There is no withholding of taxes on the repatriation of profits or dividends, royalties, license fees or group charges. However, if the investor operates in other countries in the region, the withholding tax rules in those countries will need to be taken into account in the regional business structure.
* Survey and Land Registration Bureau of the Kingdom of Bahrain offers a 10% discount calculated on the total registration fees, if the registration process begins within two month from the execution of the Registration and Sales Agreement.
10
11
BDO Egypt Consulting Ltd. 1, Wadi El Nile St., Mohandessin, Giza Cairo. Egypt P.O.Box.: 110/12655 Tel: +202 3303 0701 Fax: +202 3303 2228 www.bdo.com.eg
12
CONTENTS
13 15 17 18 19 20 Corporate Income Tax Salary Tax Social Insurance Sales Tax Stamp Tax Withholding Tax
13
14
15
Salary Tax
BASIS OF TAXATION The salary tax is the liability of the employee not the employer. However, the employer is responsible to withhold and remit the salary tax on behalf of the employee on a monthly basis. Salary tax is applicable to the following: All earnings due to the employee resulting from his/her work with third parties with or without a contract, periodically or non-periodically, whatever the names, forms or reasons of those earnings, and whether they are for works performed in Egypt or abroad and paid by a source in Egypt, including wages, remunerations, incentives, commissions, grants, overtimes, allowances, shares and portions in profits, as well as the monetary privileges and allowance in kind of all types. Earnings due to the employee from a foreign source for works performed in Egypt. Salaries and remunerations of chairman, members and directors of the boards of directors in the associations of capital in return for their administrative work.
RATES OF SALARY TAX The Taxable employees income is subject to progressive rates as follows: First L.E. 5,000 Between L.E. 5,000 and L.E. 20,000 Between L.E. 20,000 and L.E. 40,000 Between L.E. 40,000 and L.E. 10,000,000 More than L.E. 10,000,000 TAX ON PAYMENT TO NON-RESIDENT Amounts paid to non-residents (staying in Egypt less than 183 days in any 12 months) from any source, are subject to 10% taxes, without any deductions. 0% 10% 15% 20% 25%
16
Salary Tax
FILING REQUIREMENTS
- Continued
Employers are required to submit a quarter salary tax return to the Tax Authority within one month from the end of each calendar quarter. Taxes are to be withheld monthly and paid to the Tax Authority during the first 15 days of the following month.
BENEFITS-IN-KIND Benefits in kind that are given to the employees shall be determined on basis of the market value. However, the value of the following benefits in kind shall be estimated as follows: Benefits Tax Treatment
The cars expenses (used by 20% of the total car expenses is subject to salary the employee) tax. 20% of the total mobile invoices is subject to the mobile expenses salary tax. The difference between the interest rate 7% and The employees' loans with the employees loan interest (if its less than 7%) interest rate less than 7% is subject to salary tax. The value of the benefit shall be determined on The company's stocks granted the basis of the difference between the market at a value less than the value of the stock on the date it is obtained and market value of the stock. the value reckoned for the workers. Life insurance premium paid The benefit shall be determined at the premiums by the company paid by company. TAX EXEMPTION Personal allowance of L.E. 4,000 pa (over and above the zero-rated L.E. 5,000 of the annual salary). Social insurance subscriptions and Private insurance funds. Life insurance installments and Medical insurance. The following fringe benefits: employees meals, medical care, employees' group transportation, employees' uniform, housing allowed by the employer to the employees related to performing their work. Employees share in profit distribution.
17
Social Insurance
Social insurance applies to Egyptian nationals in full time employment, unless a social security totalization agreement provides otherwise. Employees pay a portion of their wages through employer withholding, in addition to another portion borne by the employer. SOCIAL INSURANCE RATE The rate of Social Insurance is as follows, showing the employer and employees portions: Amount Basic salary up to L.E. 875/month Monthly amounts in excess of L.E. 875 for other payments such as overtime or representation allowances, up to L.E. 1050 FILING REQUIREMENTS The company has to pay social insurance (employee portion & employer portion) to the Social Insurance Authority within 15 days of the following month. Semi-annual social insurance form 2 has to be submitted in January and July of each year. Employer % 26 24 Employee % 14 11
18
Sales Tax
The General Sales Tax (GST) in Egypt is to a great extent similar to VAT system in the EEC countries. GST is imposed on: Goods; where the general tax rate is 10% on each invoice. Services; which are subject to sales tax at various rates. There are some services which are not subject to tax such as the training services, professional services, and consultancy services.
TAXES ON INPUT For goods, in most cases, the company can deduct the sales tax paid on inputs from the sales tax on output, and pay the balance monthly, together with a monthly tax return. For services, it is not allowable to deduct the sales tax paid on inputs from the sales tax on output in relation to services. INVOICES DETAILS The following are the details that must be included on customer invoices: Invoice number starting from one. The company address in Egypt Sales tax registration number. Commercial registration number. Corporate tax number. Customer name.
EXPORTED GOODS AND SERVICES Both exported goods and services are subject to sales tax at a rate of zero%. BASIS OF TAXATION The earlier of the following shall be considered as the tax point, and the company has to settle the sales tax accordingly: The date of issuing the invoices. The date of delivery of commodity or rendering the services. The date of payment of the commodity value or the return of services, whether being wholly or partially, or an amount paid on account or settlement of account, or on credit, or any other means of payment.
19
Stamp Tax
Stamp tax is generally imposed on the following: Documents: a wide range of documents including certificates and declarations, judicial documents, Advertisements, licenses, utility bills. Contracts: all types of contracts Transactions: wide range of transactions such as banking transaction (i.e. loans, deposits, accounts and documents), insurance premiums, transportation Services, lotteries, company registrations, etc.
There are two types of stamp duty rates. The first is a fixed amount that is imposed on documents, contracts, etc. The amount of fixed stamp duty is specified in the legislation and varies according to the document in question. The second is a proportionate rate and this, generally, applies to transactions. The proportionate rate is calculated as a percentage. There are many percentages and amounts paid according to the Stamp Tax Law. However, below are the important items: Amount Contract Certificate Amount Loan Advertising in news papers & TV. FILING REQUIREMENTS There are various date of filing such as: Stamp tax return for advertising has to be submitted during 2 months from the date of publishing of advertisement. The stamp tax on loan has to be settled on quarterly basis L.E 1.00 per page 1.00 per page L.E 0.2% 15%
20
FILING REQUIREMENTS Entities are obliged to settle the withholding tax due before end of April, July, October, and January of every year.
21
BDO Al Nisf & Partners Al Johara Tower, 6th Floor Khaled Ben Al Waleed Street, Sharq P.O. Box 25578, Safat 13116, Kuwait Email: tax@bdo.com.kw Tel: +965 2242 6999 Fax: +965 224o 1666
22
CONTENTS
23 Corporate Income Tax 29 Other Taxes
23
RATES OF CORPORATE TAX Tax is levied at a flat rate of 15%. INCOME SUBJECT TO TAX Any income earned from carrying out business or activities in the State of Kuwait, either directly or through an agent, is taxable. An agent is a person or entity authorized by a principal to carry out business or activity on behalf of and for the account of the principal under a binding agreement. Income earned by any entity from the following is deemed to be earned from the State of Kuwait and therefore taxable in Kuwait. i) Income earned from any activities or businesses wholly or partially executed in the State of Kuwait, including income earned from the supply and sale of goods or provision of services whether the contract has been concluded inside Kuwait or abroad. Royalty, franchise, license and similar fees earned from Kuwait. Commissions or fees earned in cash or in kind from representation or brokerage agreements relating to Kuwait. Profit from any industrial or commercial activity in the State of Kuwait. Profit from sale or transfer of assets including sale of shares in a company whose assets are principally formed of immovables in the State of Kuwait (profits from sale of shares listed on the Kuwait Stock Exchange are however not taxable). Income earned from lending of funds in the State of Kuwait. Profit from purchase and sale of goods or property in the State of Kuwait including rights associated with tangible or intangible assets. Income earned from having a permanent office in Kuwait where sale and purchase contracts are concluded including place of work from where activity is carried out or contracts concluded (irrespective of whether such place of work is owned, leased or belongs to a third party). Profit from leasing of any movable or immovable property for use in the State of Kuwait. Profit from rendering of services in Kuwait including fees from administrative, technical or consulting services (irrespective of whether the contract is wholly or partially performed in the State of Kuwait or signed inside Kuwait or abroad).
ix) x)
24
Entities which are fully owned by Kuwaitis are not taxed. Also, entities which are registered in the Gulf Cooperation Council (GCC) countries (comprising of Kuwait, Saudi Arabia, Bahrain, UAE, Oman and Qatar) and fully owned by Kuwaiti / GCC citizens or any corporations which are in turn fully owned by Kuwaiti / GCC citizens are not taxed in practice. A foreign entity with a shareholding in a local Kuwaiti company is required to calculate and pay tax based on its share of profit in the local entity. THE CORPORATE TAX YEAR The taxable period is a year and normally has to be the calendar year. A body corporate may, within three months from the date of signing the contract or the date of commencing the business activity in Kuwait, apply to the Director of the Income Tax Department for permission to submit its first tax return for a period of less than one year (but not less than 7 months) or for an extended period of up to 18 months. It is at the discretion of the Tax Department to grant approval for a tax period which is less than or more than a year. DEDUCTIBLE EXPENSES All expenses directly incurred in carrying out trade or business in Kuwait, subject to the limits specified in the tax law and regulations, are allowed as a deduction in computing taxable profit, provided that the expense claimed as a deduction is: a) b) c) necessary for earning the revenue; real and supported by proper documents; and related to the taxable period.
ACCOUNTING METHODS AND BUSINESS PROFITS A companys taxable income is based on its net profit, computed according to the Kuwait Income Tax Decree of 1955 and related regulations which, inter alia, specify limits on deduction of certain expenses.
25
TAX INSPECTION AND ASSESSMENT Following the filing of the tax declaration, it is a normal practice for the Income Tax Department to carry out an inspection of body corporates books and records to verify the income and expenses reported in the tax declaration to the supporting documents.
26
27
DOUBLE TAX TREATIES Kuwait has signed and ratified double taxation treaties with a number of countries. Please contact BDO Kuwait for latest update on countries with whom Kuwait has signed and ratified double tax treaties. TAX HOLIDAY Under the Foreign Direct Investment Law No. 8 of 2001, as amended, a tax holiday up to 10 years may be granted to an entity that is involved in carrying out one or more of the following economic activities and projects: a) b) c) Industries except the projects related to discovering and producing oil and gas. Establishing, operating and managing infrastructure projects such as water, electricity, sewage or communications. Banks, investment companies and exchange companies that the Central Bank of Kuwait has approved to be established.
28
29
Other Taxes
CUSTOMS DUTIES The six Gulf Co-operation Council (GCC) states comprising Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and UAE announced the formation of the Customs Union with effect from 1 January 2003 eliminating customs duties for trade within GCC states as well as removing regulations and procedures which restrict trade within GCC. The Customs Union results in unified customs duties. The GCC states have approved a unified customs tariff of 5% on CIF invoice price subject to certain exceptions. Collection of customs duty takes place at the first point of entry in the GCC. Subsequent movement of goods within the GCC states does not attract duties. A higher tariff is imposed on imports of tobacco and its derivatives. Each GCC member state can continue to impose protective customs duty as per the list approved for each GCC country. If the goods covered by protection are imported first through another GCC state in which protective duty does not apply, then that country will levy only the normal duty of 5% and the final destination country where the protection duty applies, will recover the balance of the duty. A unified list of goods comprising of over 400 items such as basic foodstuffs, personal effects and used household items has been approved by the GCC states to be exempt from customs duties. CONTRIBUTION TO KUWAIT FOUNDATION FOR THE ADVANCEMENT OF SCIENCES Kuwaiti Shareholding Companies (public and closed) are required to pay 1% of their profits after transfer to the statutory reserve and the offset of losses brought forward, to KFAS which supports scientific progress. NATIONAL MANPOWER SUPOORT TAX Under Law No. 19 of 2000 relating to supporting National Manpower and encouragement of National Manpower to work in Non-Government agencies, all shareholding companies listed on the Kuwait Stock Exchange are required to pay a 2.5% annual tax on the net profits.
30
Other Taxes
ZAKAT
- Continued
Kuwaiti shareholding companies (public and closed) are required to pay 1% of net profit as Zakat. PERSONAL TAXATION There is currently no tax on personal income of individuals including salary income of employees. PROPERTY TAX There is no property tax in Kuwait. VAT / SALES TAX There is no VAT or sales tax in Kuwait.
31
32
CONTENTS
33
Due to the fact that Lebanon is changing its tax regulations, this section will be completed in due course.
34
BDO Audit Suites 601 & 602 Penthouse, Beach One Bldg. Way No. 2601, Shatti Al Qurum PO Box. 1176, Postal Code 112, Sultanate of Oman Tel: +968 24649020 Fax: +968 24649030
35
CONTENTS
36 40 41 42 43 44 Corporate Income Tax Withholding Tax Personal Income Tax Social Insurance & Other Contributions Other Duties and fees Bi-lateral Tax Treaties
36
37
38
39
40
Withholding Tax
Withholding tax is a tax charged on certain specified payments accruing or arising in Oman to foreign companies which do not have a pe or such income does not constitute a part of the gross income of that pe. The specified payments are, a) Royalties (Include rental of equipment), b) Consideration for research and development, c) Consideration for the use of or right to use computer software, d) Management fees. Royalties referred above are defined as (1) consideration for the use or right to use of (a) intellectual or proprietary right either for artistic, literary or scientific work, including computer software, cinematograph films, or films or tapes or discs or any other media used for radio or television broadcasting, (b) patent, trademarks, drawings, model and secret process or formula, (c) industrial, commercial or scientific equipment, (2) consideration for information concerning industrial, commercial or scientific experience, (3) consideration for granting rights to work mineral or other sources of natural wealth. The taxpayer who has paid or credited any of the specified payments is responsible to deduct 10% tax from the gross amount paid or credited and the remittance should be made to the Secretariat General not later than 14 days from the end of the month following the month in which that amount is paid or credited, whichever is earlier. Delay in remittance in withholding tax to the tax department shall attract 1% additional tax per month of the tax due.
41
42
43
44
45
Gavin Brown Partner BDO Qatar 1st Floor, Tornado Tower PO Box 24139, Doha State of Qatar Tel: +974 44999 530 Fax: +974 44999 533 Email: gavin.brown@bdo.com.qa
46
CONTENTS
47 Registration with Tax Authorities 48 Corporate Income Tax 49 Withholding Tax on International Transactions
47
48
49
50
BDO Dr. Mohamed Al-Amri & Co. P.O.Box.: 8736, Riyadh 11492 Tel: +966 1 278 0608 Fax: +966 1 278 2883 Email: info@alamri.com www.alamri.com
51
CONTENTS
52 53 56 57 58 Zakat Income Tax Withholding tax Other Taxes Social Insurance
52
Zakat
RATES OF ZAKAT Zakat is a religious tax, levied on Saudi nationals, wholly Saudi-owned companies and the Saudi shareholders share of profits of companies with foreign participation, in accordance with Islamic law "SHARIA". For this purpose, GCC nationals and companies are treated as Saudis. Zakat is payable annually on the higher of Adjusted Net Income or Zakat base (which is calculated in general on the net worth). The rate of Zakat is 2.5%. ZAKAT YEAR The rate of Zakat is fixed in respect of the corporate financial year. DEDUCTIBLE EXPENSES The general rule is that all actual expenses are deductible for Zakat calculation purposes. The cost and expenses have to be supported by proper documents. ACCOUNTING METHODS AND BUSINESS PROFITS Zakat is payable annually on the Zakat payer's total capital resources and income, excluding amounts invested in fixed assets. The rate of Zakat is 2.5%. FILING REQUIREMENTS Zakat return must be filed within 120 days from the accounting year end, e.g. 30 April, for 31 December year end. CARRY FORWARD LOSSES Where Zakat is calculated on the Zakat Base (net worth), losses are carried forward as part of the equity. Where Zakat is calculated on net Zakat adjusted income no offsetting of losses are allowed.
53
Income Tax
REGISTRATION In the Kingdom of Saudi Arabia every person subject to tax shall register with the Department of Zakat and Income Tax before the end of its first fiscal year. RATES OF INCOME TAX A 20% income tax rate is applicable to the taxable income of non-Saudi individuals in business, companies registered in Saudi Arabia, and non-resident individuals and companies carrying business activities through a permanent place of business in the Kingdom. Income includes all income, profits, gains of any type and of any form of payment resulted from carrying out activity, including capital gains and any incidental income. A Natural Gas Investment Tax (NGIT) is applicable on any person, natural or corporate, Saudi or non-Saudi, taxable income derived from exploration, production, collection, treatment, transportation, processing and fractionation of natural gas, natural gas liquids and gas condensates. The NGIT rate for any taxable year is determined based on the internal rate of return on the cumulative annual cash flows of the taxpayer from the natural gas investment activities. Based on the NGIT rates table, the NGIT rate can range from a minimum of 30% for an internal rate of return of 8% to a maximum of 85% for internal rates of return of 20% and above. A tax rate of 85% is applicable to the taxable income from oil or other hydrocarbon production activity in the Kingdom. EXEMPT INCOME The following income types are exempt from income tax: a) capital gains realized from disposal of securities traded in the Stock Market in the Kingdom in accordance with controls specified in the By-law. b) gains on the disposal of property other than assets used in the activity. THE CORPORATE TAX YEAR The rate of corporate tax is fixed in respect of the corporate tax year or the financial year. The company has the right to choose the date of year-end to issue its annual financial statements, regardless of the calendar year. Each year has to be accounted for separately. The first and last year should be a short period unless otherwise is agreed with the tax authority.
54
Income Tax
DEDUCTIBLE EXPENSES
- Continued
The general rule is that only expenses that are wholly and exclusively incurred in earning the income of the business are deductible. The cost and expenses have to be supported by proper documents. CAPITAL GAIN Capital gain derived from disposal of fixed and traded assets, or from disposal of shares in a resident company is subject to tax at 20%. The following incomes are exempt from income tax: (a) Capital gains realized from disposal of securities traded in the Stock Market in the Kingdom in accordance with controls specified in the By-law. (b) gains on the disposal of property other than assets used in the activity. ACCOUNTING METHODS AND BUSINESS PROFITS A companys taxable income is based on its accounting profits, computed according to the Saudi Accounting Standards, which is, to a great extent, compliant with the International Financial Reporting Standards (IFRS). Certain adjustments are required to be made to the accounting profit to arrive at taxable income. FILING REQUIREMENTS The corporate tax return must be filed along with all supporting documents (e.g. Audited financial statements), within 120 days from the accounting year end, e.g. 30 April, for 31 December year end. Partners in a partnership and professionals must submit their tax return within 60 days from the accounting year end.
55
Income Tax
- Continued
CARRY FORWARD AND OFFSET OF LOSSES Losses are allowed to be offset equal to 25% of tax adjusted net income for the year. Losses can be carried forward indefinitely. In case of a change of fifty percent (50%) or more in the ownership or control of a company, the share of a non-Saudi may not be deducted in losses incurred prior to the change in taxable years following the change. Rules for Advance Payment of taxation Tax has to be paid in advance where previous year tax obligation is SR 2 million or more. In such case advance tax will be 25% of previous year tax obligation and has to be paid prior to the last date of sixth, ninth and twelfth month. DZIT has the power to reduce the amount of advance tax where the income for the year drops by 30%.
56
Withholding Tax
Payments made to non-residents by a resident or a permanent establishment of a non resident, that are from a source in the Kingdom, are subject to withholding tax. Depending upon the nature of payment, the payer is required to withhold the tax at the following rates:
Tax Rate % Management fees Royalties, payments to head office or related parties for services Dividends, loan charges, insurance/reinsurance premiums, rental (lease), technical and consulting services, air tickets, air freight, shipping, and international telecommunication services Other payments Not to exceed 20 15
5 15
Technical and consulting services are deemed to be from a Saudi source even if they were performed outside the country. The person withholding the tax, irrespective of whether or not he is a taxpayer under the tax law, is required to register with the DZIT, and pay the tax so withheld within 10 days after the end of the month in which such payments are made. The payer is also required to issue a certificate to the payee stating the amount of payment and the tax withheld. At the end of each tax year, the payer is required to submit the names, addresses and other details of the payees to the DZIT no later than 120 days of the end of the fiscal year, and not later than 60 days of the end of the fiscal year for partnerships. Withholding tax is payable upon payment or deemed payment (clearance or settlement of accounts). The date of settlement is considered to be the date of payment unless the settlement is between related parties in which case it is the date of book entry. A delay penalty of 1% of the amount of unpaid withholding tax is applicable for each 30 days of delay from the due date of the tax till such time the tax is paid.
57
Other Taxes
At present the following taxes are not imposed in the Kingdom: Personal tax on employee's remuneration Value-added tax Withholding tax of local transactions Estate and gift taxes
58
Social Insurance
Social insurance in the Kingdom is administered by the General Organization for Social Insurance. Employers are required to make contribution for Saudi employees who are required to contribute the same percentage of their salary in respect of social insurance. In addition, employers are required to contribute 2% of the basic salary of both Saudi and non-Saudi employees to cover the job hazards risk. Certain categories of employees such as certain government employees, armed forces and diplomatic personnel, domestic servants etc are exempt from social insurance contributions SOCIAL INSURANCE RATE The rate of Social Insurance is as follows, showing the employer and employees portions: Amount Gross salary of Saudi employees (including benefits in kind) Basic salary of both Saudi and nonSaudi employees Employer % 9 2 Employee % 9 -
59
BDO Chartered Accountants & Advisors Suite 305, Al Futtaim Tower Al Maktoum Street, Deira P.O. Box- 1961, Dubai Tel: +971 4-222 2869/ 228 5077 Fax: +971 4-227 4867/2270151 Email: priyesh.kapadia@bdo.ae
60
CONTENTS
61 62 63 64 65 66 67 68 Corporate Income Tax Salary Tax Social Insurance Sales Tax & Indirect Taxes Stamp Tax Withholding Tax on Local Transactions Capital Gain Tax Tax Treaties
61
THE CORPORATE TAX YEAR There is no corporate tax for other entities registered in UAE. Hence, there is no tax related filing obligations for the companies registered in the UAE other then foreign banks & oil companies. DEDUCTIBLE EXPENSES The general rule is that only expenses that are wholly and exclusively incurred in earning the income of the business are deductible. The cost and expenses have to be supported by proper documents. However as there is no corporate tax in the UAE, the significance of deductable expanses is limited. ACCOUNTING METHODS AND BUSINESS PROFITS There are no Local Accounting Standards in place and to a great extent the International Accounting Standard (IAS & International Financial Reporting Standards (IFRS) are being followed in the UAE. FILING REQUIREMENTS There is no tax related filing obligations for the entities registered in the UAE other then foreign banks & oil companies. DIVIDENDS There is no withholding tax on the payment of dividends. PAYMENT TO NON-RESIDENTS Since there are no withholding taxes in the UAE and there are no restrictions in transferring funds into or outside the UAE or payment to non-residents.
62
Salary Tax
TAXATION
Individuals are not taxed in the United Arab Emirates; hence there are no taxes on salary income or personal income.
63
Social Insurance
Dubai does not have obligatory state or employer-contribution insurance schemes. Nationals are automatically provided with extensive state help, including medical care, sickness and maternity cover, child care, pensions, unemployment benefit and in some instances housing and disability benefits. Foreign workers have access to medical facilities, but too little else. Private medical insurance is recommended for most foreigners.
PENSIONS
There are no state pension schemes in UAE for foreign expatriates. There are pension schemes for UAE nationals, which are covered under Law No 2 of 2000. The law defines salary for each of sector of entity. Contributions must be deducted from the salary. The contribution total is 26% comprised as follows: From the employee - 5% From the employer - 15% From Government - 6% The employer is responsible for collecting its and its employees contributions and remitting them to the pension fund. The Government pays its contribution as a separate issue directly to the pension fund. Central Auditing Bureau - for auditing Governmental bodies and public sector entities Central Bank of Egypt - for bank audits Egyptian Financial Supervisory Authority - for public quoted companies, and all non-banking financial institutions.
The services we provide include: - - Statutory audits - - Special purpose audits - - Internal audits - Internal control review
64
TAXES ON INPUT For goods, There are no Sales taxes or VAT (Value Added Tax) in the UAE,
For services, There are no Sales taxes or VAT (Value Added Tax) in the UAE, therefore there is applicability of taxes on inputs (Services). INVOICES DETAILS
There is no specification with regards to Invoice formats; however the standard documentation will apply for invoices for import & export purposes.
EXPORTED & IMPORTED GOODS
Customs duty is levied at 5% on imports & exports of majority of products except tobacco & alcoholic beverages which are subject to duty at higher rates.
BASIS OF TAXATION
65
Stamp Tax
There is no stamp duty. However, there are various fixed transaction charges for processing of visa, work permit, notarization, vehicle registration and other services from Government departments
FILING REQUIREMENTS
As stamp duty is not applicable in the UAE, therefore there is no filing requirement of the same.
66
67
68
Tax Treaties
The UAE is a leading country with regards to agreements to avoid double taxation. These agreements bring about a positive impact on investment promotion, economic cooperation and trade between the UAE and other countries. The UAE has an extensive and growing list of double tax treaties, which are currently more than 50 countries.
BDO Middle East Firms are independent firms registered in respective countries. The term partner is used to refer to our members and employees with an equivalent standing and qualification to one of our affiliated undertakings. BDO Middle East firms are members of BDO International Limited, a UK company limited by guarantee, and forms part of the International BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO member firms Copyright 2011 BDO International All rights reserved www.bdointernational.com