The need for robust digital tax regimes in the Gulf: a case of the Saudi Arabian tax system

Almalki, SS; Ali, MB

Abstract

Governments in numerous western nations have digitalized their taxation systems, resulting in economic growth and a decrease in crimes such as tax evasion. This has garnered the interest of developing nations that wish to replicate this success. Although the developing Gulf Cooperation Council (GCC) nations have established tax authorities, tax administration and compliance must be digitised in GCC nations. Digitizing revenue collection and tax administration can be a win-win situation in terms of efficiency and convenience; therefore, digital taxation is required in GCC countries to establish a robust tax system in light of the advent of modern digital technologies. This research contributes to the current debate on digital taxation and economic reform by conducting 20 qualitative interviews with financial consultants based in Saudi Arabia. This was accomplished by identifying and analysing the key determinants of a potential digital tax regime in order to build a case for implementing robust digital tax systems in GCC nations in order to increase revenue and promote economic diversification. Our findings regarding the drivers of a potential digital tax regime in Saudi Arabia (e.g., support against tax evasion, tax payer convenience, and economic efficiency) indicate that taxation should be digitised. This is particularly important as the world moves toward a digital era in which everything can be completed with a single click. In conclusion, a robust digital tax system would not only increase revenue for GCC countries, but it would also address a multitude of underlying issues associated with citizen participation, government accountability, and the evolving global commercial space. Therefore, GCC countries must develop creative and innovative solutions in order to thrive in a rapidly evolving global market.

Citation

Almalki, S., & Ali, M. The need for robust digital tax regimes in the Gulf: a case of the Saudi Arabian tax system. Presented at BAM2022

• Presentation Conference Type: Other
• Conference Name: BAM2022
• Publication Date: Sep 2, 2022
• Deposit Date: Jan 25, 2023
• Additional Information: Event Type : Conference