Middle East tax rates

Among Middle East countries, Bahrain has the lowest top income tax rate at 0.00% in 2022. The regional average top rate is 16.1%.

Bahrain has the lowest corporate tax rate in Middle East at 0.00% (2022). The regional average is 14.2%.

Based on the combined income tax and employee social security burden, UAE is the most tax-friendly country in Middle East with a combined maximum rate of 0%.

Turkey has the highest standard VAT rate in Middle East at 20.00% (2022). The regional average VAT rate is 10.4%. VAT is charged on most goods and services, though most countries apply reduced rates to essentials like food and medicine.

For corporate taxes, Bahrain offers the lowest rate in Middle East at 0.00%. However, the best jurisdiction for a business depends on more than just the headline rate — factors like VAT, employer social security costs, ease of setup, and double tax treaties all affect the true tax burden. The regional average corporate tax is 14.2%.

The average top income tax rate in Middle East is 16.1%, compared to a global average of approximately 31%. The average corporate tax rate in Middle East is 14.2%, against a global average of around 23%. Middle East is a relatively low-tax region.

Turkey, Jordan, Bahrain, Kuwait, Qatar, Saudi Arabia, UAE do not levy a separate capital gains tax in Middle East. In these countries, profits from selling investments or property may either be tax-free or taxed as ordinary income at standard rates.