UAE Remains No.1 For Ease of Tax Payment
The UAE retained its first position in the global ranking for ease of tax payment, according to a report released on Monday by the World Bank and Price water house Coopers.
“With the least-demanding tax framework, well below the world average, the UAE has a total tax rate of 15.9 per cent, four average number of payments and an average time to comply of 12 hours,” said the World Bank’s “Paying Taxes report”.
With the UAE, Qatar shares the top spot with a total tax rate of 11.3 per cent, four average number of payments and an average time to comply of 41 hours. That compares with global averages of 40.8 per cent total tax rate, 25.6 average number of payments and average time to comply of 261.
The report analysed the same factors in 189 countries, with global averages of 40.8 per cent total tax rate, 25.6 average number of payments, and average time to comply of 261. Currently, Saudi Arabia ranks third on the list, followed by Bahrain at eighth, Oman at 10th, Kuwait at 11th and Lebanon at 45th.
Despite a small increase in the total tax rate since the previous year, the Middle East region as a whole is the easiest region in which to pay tax. It has the lowest total tax rate and time to comply, and all of the sub-indicators have been stable since 2004.
“The annual report is a powerful index in shaping discussion on tax reform and fiscal policies for many governments. The latest findings from the study reveal that while the region remains the easiest to pay taxes in, the implementation of the VAT will bring a portfolio of new discussions to tax reform,” said Dean Kern, partner at PwC’s Middle East tax and legal services leader. Details