Effects of tax on expat’s money transfer to their countries

Kuwait Upto Date • December 26, 2016 • 0 Comments

The International Monetary Fund (IMF) warned about the intention of some Gulf countries about taxation on the money transfers by expatriates, reports Arab Times daily.

The report said 90 percent of the employees in the private sector are expatriates and there will be many negative effects if this step is implemented. The report added money transfer by expatriates in the entire Gulf region is $84.4 billion and the 5 percent tax will make up only 0.3 of the total income of the Gulf countries so it will not give any reasonable improvement to the economy.

The report of the (IMF) added the intended tax will require additional administrative expenses that will also reduce the very low gains. The report added putting such tax shall result in depriving the region from its advantages that attract the expatriates.

Meanwhile, expatriates who do not have jobs must be deported because they are a threat to society in all fields said the daily quoting experts.

In this concern the experts stressed that the authorities have to control the companies that bring in workforce and arrest the visa traders. The Vice-President of the Exchange Association Talal Bahman said the financial market needs more adjustment and the dealers in the black market should be followed and arrested to guarantee financial transactions are done in a legal manner through exchange companies and the banks. He added if the State controls the transfers of money and if the State collects tax on money transfers, it will be easier to collect the fees.

Source : Arabtimes
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