Publication 28 pages

The Financial Complexity Index 2017

05 June 2017

Discover the easiest and most complex countries for accounting and tax compliance in the Middle East and Africa

The Financial Complexity Index 2017 ranks 94 jurisdictions across Europe, the Middle East, Africa, Asia Pacific and the Americas, grouping them within three key areas of challenge: regulation, knowledge and technology.

5 June 2017 | Premium content | 28 pages

The United Arab Emirates (UAE) is one of the least complex jurisdictions in the world for Accounting and Tax compliance, according to TMF Group’s inaugural Financial Complexity Index 2017.

In determining the rankings with its in-house accounting and tax experts, TMF Group used four weighted complexity parameters, considering the accounting and tax rules and regulations in different jurisdictions, and risks associated with non-compliance.

Key factors that reduce financial complexity in the UAE:

  • The United Arab Emirates is a nil-tax haven with 0% tax, no corporate tax, no personal tax, no limits on repatriation of capital or profits. This greatly reduces accounting complexity.
  • It has a strong reputation as an international financial centre and is on a convenient time zone (never more than a few hours in front or behind Europe, Asia, elsewhere in the Middle East and Africa).
  • Regulations and controls are in place to ensure that while the UAE attracts international businesses and makes a name in international financial services, it also has reputable standards.

Future developments:

  • The Gulf Cooperation Council (GCC) – of which the UAE is a member state – will begin implementing VAT at a rate of 5% from 1 January 2018.
  • Strongly anticipated to be based on the European system, VAT will be charged at each step of the ‘supply chain’. The UAE’s Finance Ministry will issue its own national VAT legislation, and will have the authority to determine specific VAT rules in certain areas.
  • The introduction of VAT in the UAE means accounting will become more complex for businesses mainly due to related tax compliance requirements. For example, every single VAT transaction must be documented, VAT returns filed, zero-rated instances and exemptions taken into account.

Download your complimentary copy of the full index today to discover:

  • 94 jurisdictions ranked according to their complexity for accounting and tax compliance.
  • The key accounting and tax compliance challenges that companies face when operating globally.
  • Why Turkey ranked as the most complex jurisdiction in the world for accounting and tax compliance and the Cayman Islands came in as the easiest.

Discover the easiest and most complex jurisdictions for Accounting and Tax compliance globally. Download your complimentary copy of the full index 

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