Tax on Profitability of Foreign Companies 2018

Tax News Update

In a recent circular by the General Commission of Tax, a new mechanism was put in force to regulate Tax on Profitability of Foreign Oil Companies Based on suggestions by the Ministry of Oil / Contracts and Licenses Directorate; the summary of the new mechanism is to rely on the foreign companies submittal (declarations) which declare the profitability achieved for the fiscal year 2017 as well as the realized tax on a percentage of 35% of the total profitability provided that these declarations and the means of payment are made under a memorandum of assessment for the purposes of receiving the tax .furthermore, declarations hall be subject to Tax Commission verification regarding the revenues and profitability subject to confirmation of the Ministry of Oil / Contracts and Licenses Directorate and so that the recoverable and non-recoverable expenses can be determined.

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