KPMG Bahrain hosted an event held on 23 January 2020 at the Downtown Rotana Hotel.
Addressing the need to follow the dynamic and ever-changing tax landscape in the region, KPMG hosted a seminar in Bahrain covering the overall tax and Zakat requirements for companies based in Bahrain with operations in Saudi Arabia. Direct taxation in Saudi Arabia remains a challenge for businesses who need to be compliant with corporate income tax, withholding tax, excise tax, VAT and Zakat. A unique aspect of the tax regime in Saudi Arabia is that the nature of taxation is dependent upon the nationality of the shareholder of the resident corporation. A resident corporation is subject to tax on the non-Saudi share while Zakat is assessed on the Saudi share.
Around 50 representatives from Bahraini companies and subsidiaries with operations in KSA and companies in the Eastern Province, with interests in Bahrain, attended the event held on 23 January 2020 at the Downtown Rotana Hotel.
Philippe Norré, Partner and Head of Taxes and Corporate Services at KPMG in Bahrain, and Wadih Abounasr, Head of Tax at KPMG in Saudi Arabia, were the keynote speakers. During their presentations and supported by KPMG professionals from both countries, they shed light on the latest industry development, General Authority of Zakat and Tax (GAZT) compliance requirements and the recommended approach by KPMG.
“KPMG is regionally connected and locally rooted and we are delighted to host our colleagues from Saudi Arabia to help businesses with operations in Bahrain and Saudi Arabia navigate the complexities of managing tax. Tax can be turned into value opportunities across both markets when managed properly and in a dynamic way. Our KPMG regional connection between local specialists puts KPMG in a unique position to provide seamless advice to our clients wherever they are,” Norré commented in his opening remark.
Abounasr added: “the tax scene has emerged further following Saudi Arabia’s expansion in tax treaty network over recent years. The has led to a wave of new regulations and procedures to streamline direct and in-direct taxes alike. This is in addition to GAZT’s increasing emphasis on digitalization and automation in reporting VAT returns. All this means that companies need to stay on top of the industry developments and trends to ensure ongoing compliance and avoid penalties.”
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