DTAAs often stipulate lower tax rates on cross-border payments like dividends, interest, and royalties, making international transactions more tax-efficient
MBG helps with dividend and interest tax planning by optimizing tax rates through DTAAs, ensuring compliance with Transfer Pricing and Thin Capitalization rules, and assisting with Tax Residency Certificates to minimize tax exposure and ensure efficient tax management.
Yes, GCC-based businesses must consider local tax laws and DTAAs to optimize tax liabilities on dividends and interest, including reduced withholding tax rates and compliance with transfer pricing and VAT regulations.
Accordingly, dividend income is outside the scope of VAT, and is therefore, not required to be reported on the VAT return. While dividend income is generally outside the scope of VAT, any amount charged as a “management fee” would be subject to VAT.
To manage international tax obligations effectively, businesses can: Conduct Tax Risk Assessments: Assess the tax risks associated with cross-border activities and transactions, identify potential areas of non-compliance, and implement risk mitigation measures.
