At the start of my career during the late 80’s, and as a fresh graduate, I was advised by a superior to get into the world of tax. As it was explained to me then, ‘‘tax is the future’, especially for our region. At that time, very few GCC countries had extensive tax functions or implementations, but with time, and as we approach the close of 2021, almost all of them have introduced tax regulations, with more coming along the way.
Although the GCC has generally been a no tax, or very low tax zone, the tax environment is now changing rapidly, propelled by the challenge of lower oil prices since 2015 and by a growing appreciation, particularly over the last year, that the move to clean energy requires a rethink of the region’s economic model. Efforts to diversify both economies and public finances are finally beginning to make progress, but the challenge is to prevent those two objectives from working against each other.
Fast forward to 2020, and we have a worldwide pandemic that is changing the game for all countries and organisations. The regional tax and legal landscape was already changing at an unprecedented pace, but many countries around the world started implementing emergency tax measures to support their economies during these challenging times. This puts our clients under more pressure than ever to react and adapt in order to comply with new regulations.
With all this change in mind, there has never been a more important time for us to take a look at how organisations and their tax functions are operating and responding. In our Middle East Tax Leaders survey we found three main areas that are of concern to organisations:
Change is the only constant in life, and that couldn’t be more relevant and true for the tax function. So, what does all of this mean for an organisation’s people and operations?
Working in tax has never been more dynamic. With so much change coming our way in the region, and all the potential for automation and digital transformation, these are very exciting times.