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GCC comparator · 2026

UAE vs Saudi Arabia vs Qatar vs Bahrain

Side-by-side 5-year projections across nine GCC entity tracks. Statutory CIT + VAT rates, social-insurance asymmetry by nationality, RHQ / QFC / DMTT incentives, and the cliff-risks (QFZP de-minimis, RHQ substance, Pillar Two top-up) each carries. Decision support, not tax advice.

Your scenario

Stored in your browser only. Applied uniformly across every selected jurisdiction.

Operating costs / revenue.

In-jurisdiction revenue share — drives VAT.

Non-resident customers — zero-rated for VAT.

Employees only (excluding founder).

Advanced inputs

Pillar Two, ownership splits, local-nationals %, QFC concessionary activity. Defaults work for most founders running the calculator the first time.

Saudization / Qatarization / Bahrainisation drives social-insurance asymmetry.

OECD Pillar Two scope?

Consolidated group revenue ≥ €750M in 2 of last 4 fiscal years.

Saudi/GCC-national share. Drives the Zakat vs CIT split for general LLC.

Qatari/GCC share. Drives 0% CIT for the mainland track.

QFC concessionary activity?

Investment manager / reinsurer / captive — qualifies for 0% QFC rate.

Outbound payments → withholding tax

Annual outbound dividends to non-resident shareholders, % of revenue.

Annual outbound interest to non-resident lenders.

Annual outbound royalties to non-resident IP-holders.

Annual outbound technical / management services to non-resident affiliates.

Recipient is in a treaty country?

When true, the engine applies a blended treaty-reduced WHT rate (~60-70% of statutory). Per-treaty rates vary; verify before relying.

Transfer-pricing compliance overhead

Annual volume. Above AED 40M triggers Master + Local file. AED 55k/yr docs + AED 25k/yr CbCR (if group in scope).

Group CbCR in scope?

True when the consolidated group revenue ≥ EUR 750M (OECD CbCR trigger).

Free-text label of the sub-jurisdiction you're targeting (e.g. DIFC, ADGM, JAFZA, Riyadh-RHQ, QFC-Lusail, BLZ). Surfaces an advisor prompt — no engine math change.

FX rate overrides (0 = default)

Defaults: 1 SAR = 0.98 AED, 1 QAR = 1.01 AED, 1 BHD = 9.74 AED. GCC currencies are USD-pegged so movement is minimal; override only if your finance team uses a different internal rate.

Tracks to compare

Pick up to nine. Default selection (UAE FZ-QFZP, KSA general, Qatar mainland, Bahrain) covers the most common four-way founder decision.

5-year picture

Total cash outflow per track

Cheapest 5-year total: UAE Free Zone — QFZP (0% qualifying income) at AED 9.3M.

UAE Free Zone

UAE Free Zone — QFZP (0% qualifying income)

Cheapest

CIT

0.0%

VAT

5%

Y1 setup

AED 30K

Renewal/yr

AED 12K

CIT (5y)AED 0
VAT (5y)AED -310K
Payroll (5y)AED 9.2M

5-year total

AED 9.3M

Saudi Arabia (KSA)

General LLC (20% CIT or 2.5% Zakat)

CIT

20.0%

VAT

15%

Y1 setup

AED 34K

Renewal/yr

AED 12K

CIT (5y)AED 2.6M
VAT (5y)AED -931K
Payroll (5y)AED 9.7M

5-year total

AED 12.4M

Risks

  • · Saudization — local-headcount threshold

Qatar

Mainland Qatar (10% on foreign-owned share)

CIT

10.0%

VAT

n/a

Y1 setup

AED 30K

Renewal/yr

AED 10K

CIT (5y)AED 1.3M
VAT (5y)AED 0
Payroll (5y)AED 9.8M

5-year total

AED 11.2M

Bahrain

Bahrain (0% CIT, non-oil/gas)

CIT

0.0%

VAT

10%

Y1 setup

AED 15K

Renewal/yr

AED 5K

CIT (5y)AED 0
VAT (5y)AED -620K
Payroll (5y)AED 9.8M

5-year total

AED 9.8M

Risks

  • · Bahrainisation — local-headcount target

Advisor questions across tracks

UAE Free Zone — QFZP (0% qualifying income)

  • · QFZP status assumes 100% qualifying free-zone income. The de-minimis test (the lower of 5% of revenue or AED 5M) on disqualifying income is a strict cliff — a breach disqualifies the entire entity for the period.

General LLC (20% CIT or 2.5% Zakat)

  • · Saudization (Nitaqat) green-band floor is typically ~25% Saudi nationals. Your scenario has 20% — non-compliance restricts work-permit issuance and contracting eligibility. Sector + headcount band determines the exact floor; verify with MHRSD.

Mainland Qatar (10% on foreign-owned share)

  • · 70% of revenue from non-resident customers — Qatar applies 5% withholding tax on most cross-border service payments TO non-residents (not the inverse). If your customers withhold Qatari WHT on their side, verify treaty relief is available.
  • · Qatar has not yet implemented VAT (GCC framework signed 2017, indefinitely deferred). Engine returns AED 0 for VAT, but a future activation date will materially change the cost picture.
  • · Mainland Qatar permits 100% foreign ownership in most sectors since the 2019 reforms (Law 1 of 2019), but a few activities still require Qatari majority partners. Verify the activity classification with MoCI.

Bahrain (0% CIT, non-oil/gas)

  • · Bahrain levies 0% CIT for non-oil/gas businesses. If your consolidated group revenue grows past €750M, the DMTT (15% effective rate) kicks in for the following fiscal year.
  • · Bahrainisation Programme target is typically ~25% Bahraini nationals for non-oil/gas sectors. Your scenario has 20% — below-target ratios trigger LMRA fee escalations on expat work permits.

Before you act on this

Decision support, not tax advice

Each jurisdiction has substantive depth this comparator can't capture — transfer-pricing rules, treaty networks, withholding-tax interactions, sector-specific incentives, and the local administrative burden of compliance. The 5-year totals here are statutory baseline math, useful for ranking options before deeper diligence. Engage a tax advisor licensed in your target jurisdiction before relying on these figures.

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