Mpact provides tax services, calculating reporting, auditing, and submitting, in addition to tax return reports to the relevant local GCC tax portals, for these taxes, which include the following:
– Value Added Tax (VAT)
Value Added Tax (VAT) is a consumption tax that is levied on the value added at each stage of the supply chain in the production and distribution of goods and services. VAT is a tax on the value added to a product or service at each stage of production or
distribution. It is an indirect tax that is ultimately borne by the final consumer of the product or service.
VAT Tax is applied to sales, purchases, expenses, imports, and exports
In a VAT system, businesses collect VAT on behalf of the government when they sell goods or services to customers. The businesses then remit the collected VAT to the government after deducting the VAT that they have paid on their purchases. The VAT is usually charged as a percentage of the selling price of the product or service.
It is crucial choosing the right and professional VAT consultant to assist you in calculating your Value Added Tax. Mpact provides a wide range of VAT consultancy services (tax consulting) to audit your VATs and handle your reports accurately.
– Excise Tax
– Withholding TAX
Withholding tax (WHT) is a tax that is deducted or withheld from certain types of payments made to non-resident individuals or companies. The amount of tax withheld is typically a percentage of the payment made and is remitted to the tax authority by the payer on behalf of the recipient.
In Saudi Arabia, Eligible companies are subject to Zakah which is a mandatory Islamic religious tax that is collected by the government and distributed to eligible beneficiaries. The collection and distribution of Zakah are overseen by the Saudi Arabian General Authority of Zakat and Tax (GAZT).
Zakah is calculated as 2.5% of a company’s net worth, including cash, investments, and business assets, that have been held for a full lunar year. The net worth is calculated after deducting any debts and other expenses.
– Corporate Income Tax (CIT)
Corporate Income Tax (CIT) is a tax levied on the income earned by corporations or businesses. The tax is based on the net income or profits earned by a corporation or business during a specified period, such as a fiscal year.
CIT is a direct tax and is typically levied on the net profits of a corporation or business, after deductions for expenses, depreciation, and other allowable deductions. The tax rate for CIT can vary by country and can be a flat rate or a progressive rate based on the amount of income earned.