The seismic shift that the regional tax landscape is undergoing will be the subject of a seminar on June 21 at the Downtown Rotana Hotel in Bahrain.  

 

Hosted by professional services firm, KPMG in Bahrain, the half-day seminar, under the theme ‘The evolving tax landscape in the GCC’, will showcase the evolving tax landscape in the region and discuss the potential implications the transformation could have on businesses in Bahrain, and those with operations within the region. 

 

Four countries within the GCC region have implemented Value-Added Tax (VAT) and two of them have already increased their respective VAT rates. The Organization for Economic Co-operation and Development (OECD) countries have agreed on a global minimum tax rate. 

 

E-Invoicing

The UAE will be the fifth GCC country to implement corporate tax in 2023 and the KSA is the first country in the region to implement ‘E-Invoicing’. With the potential of corporate tax being introduced in Bahrain in the future, it is essential for Tax and Finance leaders to keep up to date and plan for the appropriate measures and mechanism to ensure that tax does not become a cost to the business. 

 

“The introduction of a corporate tax in Bahrain is more a question of ‘when’ it will happen rather than ‘if’ it will happen. Economic diversification is a key reason why VAT was introduced and why we have experienced the doubling of the VAT rate in such a short timeframe. Corporate tax is also being looked at for the same reason. In addition, if Bahrain does nothing on corporate tax it will lose revenue to other jurisdictions under the various global minimum tax rules. Whether it’s multinationals operating here or Bahrain-based multinationals elsewhere, there would be a loss of some revenue.  

 

“With a continued focus on tax revenue, we are also likely to see the tax authority monitor businesses more closely on their obligations towards VAT compliance” said Mubeen Khadir, Partner and Head of Tax, KPMG in Bahrain.  

 

Best practices

During the event, KPMG’s tax experts will present best practices on dealing with VAT disputes, an overview of the proposed UAE Corporate Tax laws, what’s in store for Bahrain including practical steps Bahrain businesses can take now to be better prepared when Bahrain introduces a corporate tax.  

 

KPMG in Bahrain is a member firm of KPMG international. The firm was established in 1968 as the first national accounting and auditing firm, and it has grown to be one of the largest professional services firms in the country.  The firm provides Audit, Tax and Advisory services to a wide array of clients operating in different sectors, utilising the in-depth technical and industry experience of its’ professional staff.-- TradeArabia News Service