EY Official: Gulf countries will join corporate profits tax agreement

Wadih Abu Nasr, partner responsible for corporate tax services for EY in Middle East and North Africa, has provided that the Gulf countries “can join the global agreement on corporate profits”.

Abu Nasr pointed out in an interview with “Al Arabiya” who Increases in VAT rates, the latest of which may be expected In Bahrain, increasing this accelerated tax from 5% to 10%.

And he talked about the agreement of the Group of Seven, the largest economic country in the world, last June, on a tax of 15% on the profits of international companies in all countries, and “the Gulf countries are party to this global treaty, and therefore we could see corporate taxes in Bahrain and the United Arab Emirates e in others.”

He also stressed the need for the Gulf countries to Finance budget deficits and finance the projects you are undertaking and are likely to appear taxes or an adjustment of the percentages provided therein.

The “Bloomberg” agency cited sources according to which to double the value added tax in Bahrain would increase revenue and reduce the budget deficit as the economy begins to recover from the epidemic.

An official close to the government told Bloomberg that Bahrain aims to rebalance its budget by 2024 without compromising the economic recovery.

The source indicated government stimulus due to the pandemic, which included doubling the liquidity support fund to 200 million dinars ($ 530 million), postponement of central bank-backed loans, reduced reserve requirements for banks and easing of bills, which helped restore the economic recovery from the fallout from the pandemic.

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