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August 25, 2021
Saudi Arabia eases regulation to support SMEs and Entrepreneurs
Saudi Arabia will exempt small and medium enterprises (SMEs) from commerce fees register for three years as the country plans to boost the number of start-ups in the economy. Fees will start in the fourth and fifth year, but at a reduced rate of SAR 500 (USD 133) for entrepreneurs and SAR 200 for entrepreneurs with a capital of less than SAR 375,000 and whose employees do not exceed five in number. This initiative was taken to support and reduce...
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April 1, 2015
Status of Tax Regime in GCC
GCC Taxation –History and Perspectives The GCC region is known for its low tax regime. The issue of taxation in the GCC has been discussed since the 1980s and has seen many changes in the years. The tax rates and tax structures vary among the GCC countries. Kuwait introduced a corporate tax in 1955. Saudi Arabia had an income tax on foreigners until 1975, after which it was suspended owing to increasing revenue from oil exports and the need to...
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February 18, 2015
New Institutions and Legislations in Kuwait
Over the past three years, Kuwait has witnessed a raft of new regulations and legislations aimed at making doing business in the country easier and transparent. Some of the recent key legislations are recorded in the table below – Year Legislative Authority Brief Commentary 2010 Kuwaiti Parliament Privatization law passed 2010 Kuwaiti Government Labor Law for the private sector that details the procedures to be followed along the full employment spectrum, right from recruitment to separation 2010 Central Bank...
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February 15, 2015
Calibrating Regulations
Regulations and regulatory reforms are in vogue these days. The GCC has been witnessing a swathe of regulatory reforms in various sectors. How important is it to calibrate and balance reforms and regulations? This question has become hugely important in this setting. Broadly speaking, regulations have the following characteristics: 1. Counter-cyclical nature: We see that policy makers wake up only when there is a disaster in the making! The global financial crisis of 2008 is a great example, post which,...