Tax for Contractors across 22 Arab countries
6 of 22 Arab countries charge no VAT (Kuwait, Qatar, Iraq, Syria, Libya, Somalia); the highest rate is 20% in Morocco and the lowest 5% in UAE, Oman, Yemen.
Side by side
| Country | VAT | Corporate income tax | Withholding on contractor payments | Zakat on companies | Tax authority |
|---|---|---|---|---|---|
| Egypt | 14% | 22.5% | 1% | No | Egyptian Tax Authority (ETA) |
| Saudi Arabia | 15% | 20% | 15% | Yes | Zakat, Tax and Customs Authority (ZATCA) |
| UAE | 5% | 9% | 0% | No | Federal Tax Authority (FTA) |
| Kuwait | None | 15% | 0% | Yes | Ministry of Finance — Tax Administration |
| Qatar | None | 10% | 5% | No | General Tax Authority (GTA) |
| Bahrain | 10% | — | 0% | No | National Bureau for Revenue (NBR) |
| Oman | 5% | 15% | 10% | No | Tax Authority |
| Iraq | None | 15% | — | — | General Commission of Taxes |
| Jordan | 16% | 20% | 5% | — | Income and Sales Tax Department (ISTD) |
| Syria | None | — | — | — | General Authority for Taxes and Fees (Ministry of Finance) |
| Morocco | 20% | 20% | — | — | General Tax Directorate (DGI) |
| Algeria | 19% | 23% | — | — | Directorate General of Taxes (DGI) |
| Libya | None | 20% | 0% | — | Libyan Tax Authority (Tax Department) |
| Lebanon | 11% | 17% | — | — | Ministry of Finance |
| Palestine | 16% | 15% | 10% | — | Ministry of Finance — Income Tax Department |
| Yemen | 5% | 20% | 10% | Yes | Yemeni Tax Authority |
| Sudan | 17% | — | — | — | Sudan Taxation Chamber |
| Tunisia | 19% | 20% | 1.5% | No | Directorate General of Taxes (DGI) — Ministry of Finance |
| Mauritania | 16% | 25% | — | — | Directorate General of Taxes (DGI) — Ministry of Finance |
| Somalia | None | — | — | — | Ministry of Finance — Directorate General of Revenue |
| Djibouti | 10% | 25% | 10% | — | Direction des Impôts — Ministry of Economy and Finance |
| Comoros | 10% | — | — | — | Tax Administration |
— no documented figure in the sources, or set by each tender or contract. Withholding falls on payments to non-residents in most countries and on every contractor payment in a few — see each country’s tax page.
FAQ
Which Arab countries have no VAT?
Kuwait, Qatar, Iraq, Syria, Libya, Somalia.
Which Arab country has the highest VAT?
Morocco, at 20%.
Which has the highest corporate income tax?
Mauritania, Djibouti, at 25% in the documented sources.
Other comparisons
Gulf countries head to head
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