Dubai Weekly: Mujtaba Saeed Shares Strategies for Navigating International Taxation Challenges in the Gulf

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Written by: Abdullah Ansati | Tue Oct 15th, 2024

Mujtaba Saeed Shares Strategies for Navigating International Taxation Challenges in the Gulf

Riyadh, Saudi Arabia - In a recently released study, Mujtaba Saeed, a seasoned Director at KPMG, presents essential tactics for navigating international taxation challenges in the Gulf region. With a profound background in international taxation, transfer pricing, and tax accounting, Saeed offers an in-depth perspective on the complexities of international tax competition.

His paper, "The Influence of Transfer Pricing on International Tax Competition: A Case Study of Emerging Economies," explores the important role of transfer pricing in shaping global tax strategies. It focuses on how emerging economies respond to and are influenced by the profit allocation methods used by multinational corporations across various jurisdictions.

Saeed emphasizes that transfer pricing, the method of setting prices for transactions between subsidiaries of multinational corporations is crucial for shaping tax liabilities and strategies worldwide. This practice significantly impacts tax competition, affecting how nations formulate their tax policies to both attract foreign investments and maintain competitive tax regimes.

The study brings to light the dual challenges that emerging economies face: drawing multinational companies through appealing tax incentives while protecting their tax revenues from potential erosion. Saeed advocates for strategic adjustments and stringent tax regulations that conform to international norms to adeptly handle the intricacies of global tax competition.

He proposes a series of strategic approaches to counter aggressive transfer pricing tactics that can result in base erosion and profit shifting. Stressing the importance of adopting thorough transfer pricing regulations consistent with global standards such as those set by the Organisation for Economic Co-operation and Development (OECD), Saeed highlights the need for meticulous documentation and effective enforcement mechanisms. These steps are designed to enhance transparency and curtail opportunities for tax evasion, contributing to a fairer and more effective taxation system. Furthermore, Saeed advocates for sustained international collaboration and capacity enhancement within tax administrations to bolster enforcement and compliance.

Moreover, Saeed calls for continued international cooperation and capacity building within tax administrations to strengthen enforcement and compliance. His recommendations also suggest utilizing technology to increase the accuracy and efficiency of tax compliance and enforcement efforts.

Emerging economies, as outlined by Saeed, have developed various responses that reflect their unique regulatory environments and economic priorities. By strengthening their regulatory frameworks, these regions can better manage the intricacies of transfer pricing and secure equitable tax outcomes.

This seminal study offers critical insights into the relationship between transfer pricing practices and international tax competition, providing valuable guidance for policymakers and tax authorities in emerging economies. As these regions evolve, the strategies detailed by Saeed will be crucial in fostering fair and efficient tax systems that support sustainable economic growth.

Saeed highlights the importance of economic diversification in these regions. By broadening their economic bases, countries can reduce their dependence on specific industries vulnerable to international tax planning strategies. Diversification not only strengthens economic resilience but also provides more stable revenue streams, which are less susceptible to the fluctuations of global markets.

In conclusion, Saeed emphasizes the need for ongoing adjustments and international collaboration. He argues that only through continuous improvement and cooperation can countries effectively counteract the negative impacts of aggressive tax planning and ensure fair and equitable tax outcomes.

This extensive study by Mujtaba Saeed serves as a vital resource for policymakers, tax authorities, and international organizations involved in tax regulation and economic planning. It offers a comprehensive analysis backed by real-world examples and expert insights, providing a roadmap for navigating the intricate landscape of international tax competition in emerging economies.