Withholding Tax (WHT) Advisory

Withholding Tax (WHT) Advisory

Withholding tax is the tax deducted at source for certain specific types of payments made by the residents of a country to persons or entities outside that country. In the GCC, Withholding tax (WHT) is not applicable in UAE and Bahrain. WHT is applicable in Kuwait, Oman, Qatar and Saudi Arabia for interest, dividends and royalties paid to non-residents as follows:

  • Kuwait: Businesses must retain 5% of all payments made to all beneficiaries which is released upon receiving and producing an NOC from the Kuwait Tax Authority
  • Oman: WHT of 10% of gross payments
  • Qatar: WHT of 5% on fees, royalties, interest, commissions, and other services.
  • Saudi Arabia: WHT of 15% on royalties, 15% on commissions, attendance fees and other services, and 5% on technical fees, interest and dividends.

In the UAE, businesses can seek tax relief within countries which have a Double Tax Treaty with the UAE.

At MBG Corporate Services, our direct tax experts provide a range of WHT services including:

  • Implications of country specific WHT on proposed or existing transactions of GCC/ ME entities with foreign and domestic businesses
  • Withholding tax health check and diagnostic reviews
  • Advice on WHT implications on possible modes of repatriations i.e., interest, fees for technical services and royalty, if any by related parties
  • Study on the WHT rates wherever applicable, possible exemptions and exclusions under country CIT and WHT provisions to be read with relevant Double Tax Treaties
  • Study and advice on tax retention implications, wherever applicable

What can we help you achieve?

Stay one step ahead in a rapidly changing world and build a sustainable future with us.

Get a quote

Explore more Customs and International Taxation services:

Economic Substance Regulations (ESR) Compliance

Global Mobility and HR Tax

ESR Review & Consistency Advice – UAE & Bahrain

ITR Review and Filing

Master File Compliance

Tax Retention Advisory (KWT QAT)

Royalty and Fee for Technical Services (FTS) under DTAAs

Dividend Interest Advisory under DTAAs

Tax Residency Advisory

Foreign Tax Credit (FTC) Advisory

Zakat Advisory

Domestic Tax Advisory

MnA Tax – Pre Deal

MnA Tax – Deal Implementation

MnA Tax -Post Deal

Digital Tax Advisory

Family Trust Set up Advisory

Structuring Advisory

CbCR filing & advisory

Customs Health check

Transfer Pricing Strategizing international Transfer Pricing

Permanent Establishment (PE) Advisory

Advisory on Double Tax Avoidance

Tax Residency Certificate

Customs Registration

Assistance in Customs Refund

Customs Exemption Advisory

Free Trade Agreement Analysis Services