During the GCC summit in Muscat, Oman, the six Gulf nations have agreed in principle to implement corporate and individual income tax by 2012 and are now discussing ways to bring the deadline closer, people close to the matter said the Emirates Business 27/7.
The oil- and gas-producing countries are grappling with the prospect of a significant contraction in energy income from oil and gas exports next year and the spectre of budgetary deficits.
People close to the action at the GCC summit in Muscat, Oman said, however, that individual members of the Gulf group are unlikely to impose income tax unilaterally.
“However, the prospect of drastic reductions in oil revenues and the resultant fiscal deficits has forced the six countries to examine whether implementation can be done earlier than 2012,” they said.
