">
TechMoran
  • About Us
  • Deals
  • Jobs
  • Motoring
    • Money
  • Pitch Your Startup
  • Submit Your Post
  • Freelance Gigs
  • Travel
  • Men’s Corner
  • Dating
Saturday, January 16, 2021
  • Startups
  • Reviews
  • Insider
    • Obituaries
  • Business
  • Women
  • Blockchain
  • Columnists
  • Hacks & Facts
    • How To
  • Editions
    • US Edition
    • India Edition
    • MENA Edition
    • Asia Edition
    • Europe Edition
    • International Edition
No Result
View All Result
TechMoran
">
Home Business

Stark Contrast Between Nigeria & UAE Tax Regimes

Brian Wafula by Brian Wafula
7 years ago
in Business
6 min read
0

dubaiBy Partners

This is not so much a tale of two cities but a tale of two countries, Nigeria and the United Arab Emirates (UAE), and their respective tax regimes. For when it comes to starting up a business overseas, fledgling companies need every financial edge they can muster, from top-notch business banking to simple and transparent taxation.

Nigeria’s tax system is complex and multi-layered, says the highly respected Oxford Business Group (OBG), which has historically resulted in wide-spread tax evasion. According to the Ministry of Finance, says the OBG, more than 75% of smaller enterprises fail to pay taxes, while revenues collected amount to 7% of GDP, a figure the Nigerian government has said it wants to see increased to 22% within two years.

However, citing figures from a report for the World Bank, published late last year by consultancy PricewaterhouseCoopers (PwC), Nigeria was rated 170 out of 189 countries for ease of paying tax, down from 155 previously.

Taxation in most West African countries is a challenging policy issue, given the large size of the region’s informal sector. But, says the OBG, according to PwC, Nigeria has some relative strengths, including its “total tax rate”, defined as the sum of various taxes (such as corporate, labour, property and turnover taxes) expressed as a percent of profit for a hypothetical medium-sized business. By this measurement, Nigeria’s 33.8% was below both the global average of 43.1% and that of Africa, at almost 53%.

However, it fared poorly in other categories. One such example was the number of tax payments that the hypothetical company had to make, which stood at 47, well above international standards. But it was the time a business had to spend to meet its tax obligations – 956 hours annually as against the African average of 230 hours or the global average of 268 hours – that dragged Nigeria’s rating down.

READ  OLX Nigeria partners CWG to offer free SMERP Solution to over 10,000 SMEs on its platform

The contrast with the UAE couldn’t be any starker. For this dynamic Persian Gulf state leads the world in the ease of paying taxes – yet again. The number of payments required in a year is only four while the time spent fulfilling tax obligations amounts to a mere 12 hours annually.

Related posts

Cellulant Group CEO Ken Njoroge to step down in June

January 14, 2021
0

The Fool-Proof Strategy For Business Owners To Find The Perfect Office Space

January 13, 2021
0

UAP Old Mutual launches digital last expense cover for as low as Ksh 50

January 13, 2021
0

How to Use Podcasts and Online Information to Enhance Ventures

January 6, 2021
0

However, ease of paying taxes doesn’t mean the UAE grabs all it can from hard-pressed foreign-owned businesses. In fact, the opposite is the case, which perhaps helps to explain why setting up an overseas venture in the capital Abu Dhabi, or in Dubai, the largest metropolis in the UAE, is such an attractive proposition.

But there’s so much more to it than that, not least the free-zone business environment where red tape and bureaucracy is deliberately kept to an absolute minimum. There are yet more  mouth-watering incentives on offer from the UAE government, such as zero personal or corporate tax rates; 100% foreign ownership allowed; 100% repatriation of capital and profits; no foreign exchange controls; purpose-built infrastructure options; and little or no restrictions on hiring and firing employees.

Finally, free zone businesses can be set up in a matter of days, not weeks or months as in so many other countries. Check out the OBG economic update on Nigeria here.

READ  Bob Collymore's Contract at Safaricom Extended for Two Years

****

Partner content is written by our friends from around the world.

Readers 1,033

Share

  • Click to share on Telegram (Opens in new window)
  • More
  • Click to share on Tumblr (Opens in new window)
  • Click to print (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)

Like this:

Like Loading...

Related

Brian Wafula

Brian Wafula

Related Posts

Business

Cellulant Group CEO Ken Njoroge to step down in June

January 14, 2021
0
Business

The Fool-Proof Strategy For Business Owners To Find The Perfect Office Space

January 13, 2021
0
Business

UAP Old Mutual launches digital last expense cover for as low as Ksh 50

January 13, 2021
0
Business

How to Use Podcasts and Online Information to Enhance Ventures

January 6, 2021
0
Business

Equity Group crosses the trillion-shilling balance sheet milestone

December 23, 2020
0
Business

Econet Group’s Strive Masiyiwa Appointed to Netflix Board of Directors

December 17, 2020
0
Business

Is Kenya Becoming a Retail Deathplace?

December 15, 2020
0
Business

Australian Buy now, pay later provider Openpay launches in the US

December 15, 2020
0

https://bit.ly/2VOxuoBhttps://bit.ly/2VOxuoBhttps://bit.ly/2VOxuoB
ADVERTISEMENT

Join our Mailing List

Loading

Recent Posts

Baidu establishes an Intelligent electric vehicle arm to bring autonomous cars on a road near you

January 15, 2021

Adam Molai’s JUA Kickstarter Fund Doubles to $2M to Kickstart African Entrepreneurship

January 15, 2021

History of Binance: The Success and Failure of One of the Most Popular Cryptocurrency Exchange

January 15, 2021

How we can all contribute to the Green revolution 

January 15, 2021

How to fuliza by Safaricom guide

January 15, 2021
">
">

Follow Us

">

There are many sites out there focused on blowing off some steam, from funny entertainment to thrilling experiences like playing online, in some cases online gaming could grant you the chance to win extra money. We came across rocketpot.io while browsing for a good btc casino online and it left us a very good impression with their wide variety of games and crypto offering.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy

© 2019 Moran Media Group - All rights reserved TechMoran.

No Result
View All Result
  • Startups
  • Reviews
  • Insider
    • Obituaries
  • Business
  • Women
  • Blockchain
  • Columnists
  • Hacks & Facts
    • How To
  • Editions
    • US Edition
    • India Edition
    • MENA Edition
    • Asia Edition
    • Europe Edition
    • International Edition

© 2019 Moran Media Group - All rights reserved TechMoran.

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
%d bloggers like this: