Deloitte Middle East Tax Handbook

We are pleased to present the 2022 edition of the Deloitte Middle East tax handbook – a comprehensive guide to help you keep abreast of the regional tax rates and regimes. 

Digitization of tax, sustainability measures, workforce mobility, other ambiguities on the global tax landscape and the changing local tax environment are fundamentally shifting how the tax function operates. Tax leaders must become strategic advisors while maintaining flawless compliance. 

Changes in regulation and tax reform continue to be on the increase in the Middle East (ME). On 31 January 2022, the Ministry of Finance (MoF) announced that the United Arab Emirates (UAE) will introduce a federal Corporate Tax (CT) on business profits that will be effective for financial years starting on or after 1 June 2023. 

The introduction of CT is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation. The certainty of a competitive regime, together with the UAE’s extensive network of double tax treaties, will cement the UAE’s position as a leading hub for businesses and investments. 

Over the past year, governments in the region have shown their commitment to transform their economies into mature markets aligned with global best practices. Taxpayers in the region are facing this reform during a time of unparalleled pressures of the fast-paced global regulatory changes. 

In addition, various changes have been introduced across various ME jurisdictions. These include the introduction of a doubled Value Added Tax (VAT) rate in Bahrain, updated economic substance rules in the UAE, new Transfer Pricing (TP) regulations in Qatar, a new e-invoicing mandate in Saudi Arabia, Organization for Economic Co-operation and Development’s (OECD’s) release of Pillar Two model rules for domestic implementation of 15% global minimum tax, among other key tax developments. 

Technology was also on the agenda of businesses. The right technology makes tax departments more efficient and effective. Streamlining and automating processes can free tax professionals to focus on high-value work.

No matter the size of the business, managing today’s Tax function is becoming increasingly challenging, especially when Tax executive and Tax department expectations, roles and responsibilities are constantly changing. While Tax executives remain responsible for Tax compliance, planning, reporting, and risk management, the increasingly global nature of doing business is changing the structure of companies and their operating models, creating new Tax related complexities, demands, and potential opportunities. 

In order to navigate the changing landscape, businesses need to be resilient in dealing with the immediate impacts, as well as prepare for what is yet to come.

The Deloitte Middle East Tax practice is committed to supporting its clients and business partners in these challenging times. We hope that the Middle East tax handbook will prove useful to businesses who are looking to invest in the region, as well as those who are already present, but are looking to undertake a review of their tax position.