The Middle East, which until recently was sought mostly by investors in the oil and gas field, has become a very attractive destination for entrepreneurs seeking to operate in other industries as well and one of the most appealing aspects of starting a business here is the taxation system.
Most Middle Eastern countries offer a low-tax regime, while others, such as Qatar, impose no corporate or personal income taxes. So, if you want to operate in the Middle East, setting up a business in Qatar can prove to be quite advantageous.
Below, you can read about other advantages offered by Middle Eastern countries in terms of taxation.
The Middle East, which until recently was sought mostly by investors in the oil and gas field, has become a very attractive destination for entrepreneurs. Pixabay
Most countries in the Middle East provide for the free repatriation of profits earned by companies operating here. This is also the case of the UAE in which foreign investors can set up various types of companies. For example, starting a business in Dubai can mean free repatriation of profits if the owners are foreigners.
One of the struggles of business owners is to pay various employment-related taxes, contributions and insurances. This is not the case of many countries in the Middle East where there are no such taxes or where employment is taxed at very low rates. When combined with a cheaper workforce compared to European countries, states here will definitely become more attractive to investors from all over the world.
Even if they impose a few or no taxes, many Middle Eastern states have signed double taxation agreements in order to help foreign business owners reduce the tax burden in their home countries. Also, when considering that these agreements follow the Organization for Economic Co-operation and Development models on the disclosure of financial information, these countries become more appealing for those interested in onshore destinations with low corporate taxes.
One of the recently introduced taxes by countries in the Gulf Cooperation Council is the value added tax. However, this tax is imposed at very low rates and many investors with companies here have obtained the support of governments in implementing the new regulations which provides for how quickly Middle Eastern countries can adapt to changes.
The Middle East is one of the most appealing parts of the world when it comes to taxation, however, it offers many other benefits apart from this aspect. The cheap workforce, the modern legislation and economic stability are also some of the reasons why foreign investors choose countries here for setting up businesses.