With the possible introduction of VAT by 2018 in GCC region, it is a critical time for organizations across the region to take into account the impacts and other changes that will accompany this introduction, an industry expert said.

Nauman Ahmed, partner and Middle East Tax leader at professional services firm Deloitte, was speaking an annual seminar hosted by the company on global and Saudi Arabian tax and zakat updates impacting businesses.

The seminar ran in Riyadh, Jeddah and Al-Khobar, and aimed at sharing and discussing in depth the tax landscape shaping the current and future strategies and to profitability of companies operating in Saudi Arabia. The seminars were attended by over 350 representatives from various organizations operating both globally and in Saudi Arabia.

The seminars discussed the introduction of Value Added Tax (VAT) in the region, along with other updates relating to the Base Erosion and Profit Shifting (“BEPS”) concept currently being discussed by the Organization for Economic Cooperation and Development (“OECD”) for development of country-by-country reporting frameworks.

Other important topics covered by the Deloitte seminars included updates to the Saudi corporate income tax law, developments in the practices of General Authority of Zakat & Tax (GAZT) including introduction of online portal titled “ERAD” for filings, discussions on zakat regulations, withholding tax law and related updates including various clarifications and circulars issued by the GAZT.

“BEPS, Zakat regulations, and the introduction of ERAD are all game changers as the economies are adapting to the reality of fall in oil prices,” added Ahmed.

 “It is now more important than ever that businesses operating in Saudi Arabia understand the impact the changing global landscape of taxation would have on future operations as they need to plan ahead to maintain their profitability,” he concluded. – TradeArabia News Service