received his Masters of Law in Taxation from New York University School of Law in New York, New York. Mitchell is a member of the State Bar of New York and New Jersey.

KJ- Please tell me what your company does?

MG- We are a seven billion dollar global logistics provider with our global headquarters in Kuwait and with extensive operations throughout the United States and the Americas, Asia, Europe, Middle East and a growing presence in Africa and we conduct business in more than one hundred countries worldwide. As a global logistics provider, we move goods from one location to another around the world for our customers which include large business organizations as well as various governments and agencies such as the US Department of Defense (DOD) and the United Nations. We pride ourselves in developing solutions for transporting unique goods as well as transporting goods to challenging, emerging markets.

KJ- What is unique about working for a company headquartered in Kuwait?

MG- What is most unique is that a public Kuwait company pays around a 3% tax rate so it is different than most country tax rates which are much higher. Kuwait also has a limited number of tax treaties which means there are limited opportunities to bring money back to the parent in Kuwait without withholding tax leakage which leads to creative tax planning opportunities. Another interesting aspect working in Kuwait and in this part of the world is the Gulf Cooperation Council (GCC). The GCC includes the countries Kuwait, Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) which includes Dubai and others. The Gulf Cooperation Council countries have an alliance amongst themselves which either reduces or eliminates income taxation amongst the taxpayers should certain ownership conditions be satisfied. Even though these GCC countries do not have income taxes amongst the member states there is another type of tax or levy that is imposed in lieu of the income tax which is called a Zakat (or religious levy).

KJ- What can you tell me about a Zakat or religious levy in this part of the world?

MG- The religious tax is called a Zakat which is really a religious levy that is in lieu of an income tax~so they do not really pay income tax but rather a levy. The Zakat is not based on income but rather on net capital employed computed under a complicated formula. Most members of the Gulf Cooperation Council (GCC) will impose this tax instead of an income tax if certain ownership conditions are satisfied. Zakat will apply if the company is doing business among the Gulf Cooperation
Council countries and it is owned by shareholders who are in the GCC. However, if a company is partly owned by shareholders who are GCC members and partly owned by shareholders who are not GCC members, then the percentage of the ownership of the company that is owned by GCC members would be subject to Zakat and the balance of the company would be subject to income tax outside of Zakat at a higher tax rate. Of course this discussion is quite simplified and the actual application of the rules is less certain.

KJ- Does Kuwait have an agency that does audits?

MG- Yes, you do have government agencies that will review books and records periodically so audits do take place. The tax rates are generally low in these countries due to the flow of oil and gas money in the region. The countries in the Gulf Cooperation Council pay very limited tax. There is a separate taxing regime applicable to companies that are engaged in oil and gas production that is outside of my area of expertise and the rates of tax for companies engaged in that industry are substantial.

KJ-What is the best way to get around Kuwait?

MG- The best and easiest way to get around Kuwait is by taxi because of the heat. The heat is intense so you would want to spend as little time outside as possible except for winter and the months that wrap around winter when the temperatures are more moderate. During the summertime months of July and August, the weather can get up to 120 degrees with occasional sand storms~which can be unbearable. Many executives leave the country during these portions of these months to vacation. KJ- Do you feel safe in Kuwait?

MG- I generally do feel safe. Nonetheless, the hotels have large protective barriers in front of them and employ metal detectors and guards. We have an extensive facility in Kuwait which is about forty miles from the Iraq border. When you fly into Kuwait you see military personnel on the same planes that you have flown in on and you see military when you leave the country as well.
KJ- Why did a company headquartered in Kuwait set up a base in Santa Ana, CA?MG- Our presence in Santa Ana, CA was a result of an acquisition. The company wanted a global network and we are now in over one hundred countries around the world. It was important for the company to build out a global network as quickly as possible by acquisitions in the United States, Europe and Asia. In certain locations like Eastern Europe, we established new businesses rather than growing by acquisition.

KJ- What advice would you give to anyone entering the international tax field?

MG- I would advise them not to limit themselves as many people try and get into a comfort zone. For instance, they may know the European or Asian tax systems very well and want to stay just in these areas of tax. My advice would be to stretch outside of their comfort zone into other geographies. You need to challenge yourself and explore these new areas on the tax side and in working with the business management team as well. You should not limit yourself to learning one region because you will be surprised that there are similarities in other jurisdictions as well.

KJ- What country do you enjoy working with the most?

MG- I would say Singapore would be a good choice in answering your question because the Singapore government works very closely with you. They understand what the businesses are trying to do and they look at the issues from the business perspective. In Singapore, they have an Economic Development Board (EDB) which is a liaison between companies and the government which facilitates arrangements with the Government of Singapore. They understand what businesses want and that the reason that businesses go there is for the financial benefits they receive in Singapore. They are very focused, sharp and forward thinking.KJ- Mitchell, thank you for taking the time to answer our questions. Your perspective is valuable to the Tax Intelligence Report readers around the world and we genuinely appreciate the time you gave to share your experiences.

Kathleen Jennings (KJ)
Editor, The Tax Intelligence Report
Kathleen@etsearch.com

Mitchell Greenhill (MG)
Vice President Global Tax
Agility Holdings
Santa Ana, California
mgreenhill@agilitylogistics.co