UAE 'has the least demanding tax framework in the world'

26/11/2012 - Dubai Investment News Posted by Bob Brunskill
UAE 'has the least demanding tax framework in the world'

The UAE has the least complicated tax framework in the world, a new study has suggested.Research undertaken by the World Bank, International Financial Corporation and PricewaterhouseCoopers (PwC) showed that businesses operating in the Middle Eastern country benefit from the least burdensome tax system on the planet.The Paying Taxes 2013 - The Global Picture report was published over the weekend (November 25th) and it is another glowing endorsement of the UAE's status as a corporate hub.Companies based in places like Dubai have to make fewer payments to the state and workers continue to benefit from the lack of an income tax system.PwC representatives said nations all around the world are looking at ways to reform their tax framework, despite the challenging economic climate.Introducing tax concessions is a good way to encourage enterprises to grow, which obviously results in wider economic expansion.The Middle East has dominated this particular area for years - a point emphasised by the presence of Qatar, Saudi Arabia, Bahrain, Oman and Kuwait in the top 15 in the tax efficiency rankings put together in the latest report."Electronic filing and payment reduces paperwork and complexity in tax systems and can help increase tax compliance and reduce the cost of tax administration," commented Augusto Lopez Claros, director of global indicators and analysis at the World Bank."This reduction across all regions of the world in the burden of tax administration is a welcome development."A number of recent studies have highlighted the UAE's massive potential as a global business centre.According to the World Bank's latest Ease of Doing Business Report 2013, the country has moved into 26th position globally - up from 33rd in the previous year.The Dubai government is particularly keen to promote entrepreneurship and a number of new developments will feature state-of-the-art business districts.Taking all of this into account, it is certainly no surprise to see so many companies setting up headquarters across different parts of the UAE.