Archives: News Updates

ZATCA calls on its Taxpayers to Benefit from its APP Services

Riyadh September 18 2023:

The Zakat, Tax and Customs Authority (ZATCA) urged all taxpayers to benefit from the ZATCA application on their smart devices. The app is available through the App Store and Google Play systems. The application helps taxpayers and customers improve their experience by obtaining an automated set of services.

In this regard, the Authority explained that it has added a number of customs and tax services to the application, including the Electronic Invoice Validation service, the Excise Goods Verification service, the Submitting and Inquiring About Reports service, Submitting Transactions, and the Customs Duty Calculator and much more.

Zakat, Tax and Customs stated that the ZATCA app is based on three main principles, which are ease, speed and efficiency. The app offers clarity and ease for everyone who uses it from the moment of registration to the implementation of services. Advanced technology provides all the Authority’s taxpayers and clients with a rich experience through simple and smart-to-use features.

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FTA Release General Guide on Corporate Tax

Dubai September 15 2023:

FTA releases a General Guide on Corporate Tax.

The guide is designed to provide general guidance on Corporate Tax in the UAE with a view to making the provisions of the Tax Law as understandable as possible to readers. It provides readers with:

  • An overview of the main Corporate Tax rules and procedures, including the determination of the Corporate Tax base.
  • The calculation of Corporate Tax, the filing of Corporate Tax Returns, and other related compliance requirements.
  • Assistance with the most common questions businesses might have.

The guide should be read by those who want to know more about the Corporate Tax regime in the UAE. It is intended to be read in conjunction with the Corporate Tax Law, the implementing decisions and other relevant guidance published by the FTA.

FTA launches Tax Awareness Event Series among School and University Students

Dubai September 13 2023:

The Federal Tax Authority (FTA) has launched a new series of events, including a set of specialized educational workshops, to promote tax awareness among school and university students as part of its comprehensive awareness campaign for this key sector.

The events are scheduled to coincide with the start of the 2023/2024 academic year and aim to enhance student awareness about the basics and importance of the tax system.

The Authority explained that the campaign’s activities are organized in collaboration with the relevant educational institutions in the government, semi-government, and private sectors. It aims to enhance awareness among students – the future leaders and entrepreneurs – about the importance of the tax system and its role in maintaining prosperity, which has become a fundamental part of the UAE community’s everyday life.

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ZATCA announces Major Tax Fine Exemptions

Riyadh September 10 2023:

Saudi Arabia’s Zakat, Tax and Customs Authority urged all taxpayers to benefit from the initiative ‘Cancellation of Fines and Exemption of Financial Penalties’, that ends December 31, 2023. The Authority has also urged tax payers to contact them if they have any inquiries via the unified call centre number (19993), on email (info@zatca.gov.sa), or via their website.

The authority has also clarified that the fines covered by the exemption decision include fines for:

  • Late registration in all tax systems
  • Late payment
  • Late filing of returns fines in all tax systems
  • Fines to correct VAT returns

It also covers fines for violations of VAT field control related to applying the e-invoicing regulations and other VAT general regulations. The initiative excludes penalties related to tax evasion violations and fines paid before the initiative’s effective date.

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Oman, Russia sign Double Tax Agreement (DTA)

Muscat September 05 2023:

Oman and the Russian Federation inked an agreement on Thursday on the avoidance of double taxation and the prevention of tax evasion for income taxes.

The agreement was inked by Saud Nasser al Shukaili, Chairman of Oman Tax Authority on behalf of the Oman government and Alexei Sazanov, Deputy Minister of Finance on behalf of the Russian government. The agreement aims to legally protect investors from imposing double taxes and regulate the imposition of tax between the two countries, which will contribute to enhancing investments and trade exchange between them.

The agreement should be ratified this year and enter into force from January 1, 2024.

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FTA Renews Call for PJSCs and PSCs to Register for Corporate Tax

Dubai September 04 2023:

The Federal Tax Authority (FTA) has renewed its invitation for Public Joint Stock Companies (PJSCs), Private Shareholding Companies (PSCs), limited liabilities companies and private companies resident in the UAE to register for Corporate Tax, in accordance with Federal Decree Law, which applies to financial years beginning on or after 1 June 2023.

The FTA emphasized the importance of prompt registration for corporate tax especially for the above companies and juridical persons with taxable income whose financial year started on 1 June 2023.

In January 2023, the FTA announced registration for Corporate Tax through the EmaraTax portal and invited specific categories of Taxable Persons to register. In May 2023, the FTA opened Corporate Tax registration for Public Joint Stock Companies and Private Shareholding Companies resident in the UAE. The FTA affirmed that it would provide taxpayers with sufficient time to complete registration and meet their legal obligations while giving priority to Taxable Persons whose financial year started on 1 June 2023, as part of the FTA’s strategy to ease the registration process.

Know the steps to register.

FTA releases Guide on Small Business Relief

Dubai September 2 2023:

FTA releases Guide on Small Business Relief.
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The guide is designed to provide general guidance on the Small Business Relief for Corporate Tax in the UAE. It provides you with and overview of:

  • What the Small Business Relief is;
  • Who is eligible for it;
  • How it works;
  • How long it is available for; and
  • Related compliance requirements.

Any person carrying on a business in the UAE should review the relevant sections of this guide and consider if the Small Business Relief is applicable to them.

Kuwait keen on Introducing Excise Taxes instead of VAT

Kuwait City August 16 2023:

The Kuwait Government said the application of value added tax in Kuwait during the current circumstances will be widely rejected at the parliamentary levels.

The government has excluded it from its plans during the next three years at least, indicating it will resort to the application of excise tax instead of VAT as its first choice for tax collection.

Sources reveal that “The application of excise tax will include tobacco and its derivatives, soft and sweetened drinks and luxury goods such as watches, jewelry and precious stones, as well as luxury cars and yachts.” The value of the proposed tax on these goods will range between 10 and 25 percent.

Sources added that the government wants to apply VAT in accordance with its agreement with Gulf Cooperation Council countries, but it must be approved by the National Assembly, which is currently difficult in light of popular and parliamentary rejection.

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Oman Exempts EVs from VAT

Muscat August 15 2023:

Oman will exempt electric vehicles and parts from value-added tax (VAT), customs tax and registration fees, starting July 1, to encourage more adoption.

According to the Tax Authority (TA), zero VAT on EVs will be applicable under specific conditions, including the car must be equipped with a fully electric motor or hydrogen-powered engine, and the vehicle must be registered in the Sultanate as either an electric car or zero-emission vehicle (hydrogen) in compliance with prescribed procedures.

Additionally, the EV must meet the specifications and standards approved in Oman. Purchase of the EV and its spare parts must be from a person or entity holding a registered VAT account in the country. Oman also plans to increase the number of electric vehicles by converting public transport, and installing more public chargers according to the ministry of transport’s carbon reduction program.

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