Markaz partakes in tax and legal affairs symposium

The Kuwait Financial Center (Markaz) recently engaged in the “Annual Symposium on Taxes and Legal Affairs in Kuwait,” organized by Price WaterhouseCoopers, underscoring its commitment to staying abreast of evolving financial sector dynamics. Ali Khalil, CEO of Markaz, contributed to a panel discussion alongside experts from diverse sectors in Kuwait.

During the discussion, according to Al-Jarida daily, Khalil emphasized the significance of Kuwait’s new tax laws in aligning with global tax standards, particularly initiatives like the Base Erosion and Profit Shifting (BEPS) project led by the G20 and OECD countries. He highlighted Markaz’s focus on seizing opportunities amid the challenges posed by the new tax regime.

Khalil outlined the multifaceted impact of corporate tax systems, including effects on corporate profits, market values, investor behavior, and investment patterns. While acknowledging the potential to diversify revenue sources through taxation, he underscored the need for careful consideration of its implications on consumer purchasing power and investment decisions.

Advocating for a proactive approach to tax compliance, Khalil recommended that corporate taxpayers equip themselves with the necessary knowledge and leverage external tax expertise to navigate complexities while focusing on their core business activities. He also emphasized the importance of cooperation between the Kuwaiti Tax Authority and taxpayers, suggesting avenues such as seminars and conferences to facilitate compliance.

In light of Kuwait’s aspirations for economic diversification and workforce development, Khalil stressed the importance of overcoming challenges to achieve sustainable progress. He identified priorities such as enhancing the ease of doing business, particularly through digitalization initiatives across ministries, to capitalize on new opportunities.

Concluding his remarks, Khalil characterized taxation as a partnership between the private sector and government, emphasizing that aligning interests between the two sectors is crucial for fostering economic growth and ensuring effective tax collection. This collaborative approach, he argued, will drive success for both stakeholders and contribute to Kuwait’s broader socio-economic objectives.