E&Y: MENA Governments lower corporate tax rates

According to Ernst & Young’s MENA Tax Conference 2013 held in Hong Kong, lowering of corporate tax rates by MENA governments is expected to increase the flow of Foreign Direct Investment (FDI).

However, as a consequence of lower tax collections, tax authorities in a number of countries in the MENA region are actively also considering and implementing changes in tax policy and compliance requirements that are likely to have significant effect on local taxation environments.

The conference’s wide range of topics included increased focus on transfer pricing, the importance of thin capitalisation rules, with-holding tax for non-residents, the interpretation of tax law, considerations for tax exemptions, Value Added Tax (VAT), customs and sales tax in the region and tax treaty networks.

One of the most important trends in the GCC and MENA has been the increase in Foreign Direct Investment (FDI) as a result of attractive business opportunities and favorable lower taxation rates.

Read more: http://www.gulfbase.com/news/e-y-mena-governments-lower-corporate-tax-rates/232706