Middle East: Accounting and Audit

Businesses operating in Saudi Arabia may need to manage several tax obligations, including Corporate Income Tax, Zakat, VAT and Withholding Tax. Which obligations apply depends on factors such as ownership structure, the nature of the business and the transactions it undertakes, making accurate accounting and ongoing ZATCA compliance essential.

The Egyptian tax system has undergone a significant change following the enactment of Law No. 151 of 2026, amending certain provisions of the Income Tax Law No. 91 of 2005. Article 6 of the new law repealed Article 18 of the Income Tax Law, which had provided the legislative basis for issuing specific rules and principles for the tax assessment of small enterprises.

Market movements occur irrespective of the calendar used for the financial reporting cycle. Interest rates may shift in between reporting dates, exchange rates can shift within a short while, market multiples can shift rapidly, and news about the entity itself might influence the expectations of the market participants until the next reporting date.

The UAE Federal TaxAuthority (FTA) has recently issued Public Clarification CTP011¹, setting out its position on downward transfer pricing (TP) adjustments made by a Taxable Person in the Corporate Tax Return, along with the disclosure and documentation expected to support such adjustments.

In the UAE, the requirement for companies to undergo auditing is primarily influenced by their legal structure, size, and activity. While not all companies are required to be audited, there are specific regulations...

Most businesses operating in the UAE start managing their finances with a basic setup at the outset. They hire an accountant to work on invoices, payroll, VAT, vendor payments, reconciliations, and reporting. For the initial few months, the system works fine. However, as businesses grow, the department notices a surge in transactions. There are more employees, multiple bank accounts, and tighter deadlines to manage.