ZATCA Participates in the “RAD” Entrepreneurship Forum and Exhibition
Date: 20 Nov, 2023
Riyadh November 20 2023:
During the forum’s activities, the Authority reviewed its initiatives towards facilitating trade and its services provided to taxpayers, where His Excellency Mr. Abdullah Al-Sadhan, Deputy Governor for Operations at the Zakat, Tax and Customs Authority, participated in a dialogue session during which he touched on the initiatives and services provided by the Authority to entrepreneurs, and its efforts to raise the level of quality of digital services provided.
His Excellency also reviewed the initiative to exempt from fines and financial penalties for taxpayers subject to all tax systems, in addition to reviewing the initiatives provided by the Authority in the field of improving and developing customs clearance procedures, the most prominent of which is the two-hour clearance initiative, which represents a unique model for unifying efforts between customs clearance authorities.
204 Accredited Tax Agents Attend FTA's Tax Agent Forum of 2023
Date: 15 Nov, 2023
External URL: https://bit.ly/3QZhRYJ
Dubai November 15 2023:
The Federal Tax Authority (FTA) emphasised the critical role that accredited Tax Agents play in supporting taxpayers in general – and those subject to Corporate Tax, in particular – to comply with tax laws seamlessly, efficiently, and accurately.
Moreover, the Authority underlined the strict standards applied to practicing the Tax Agent profession in order to ensure the highest level of competence among accredited agents, where practicing the profession requires advanced academic qualifications and practical experience to enable Tax Agents to fulfil their role, in line with the highest standards.
The FTA organised the second Tax Agents Forum for 2023, which brought together 204 accredited Tax Agents, along with several officials from the Federal Tax Authority, as part of its continuous communication plan to introduce its strategic partners to the latest developments in the tax sector.
Bahrain Fines its Tax Evaders
Date: 09 Nov, 2023
Manama November 9 2023:
Two business owners have been fined more than BD 120,000 for evading excise taxes on e-cigarette cartridges, and were ordered to pay back the unpaid taxes. The Lower Criminal Court fined the first defendant BD 116,309 and the second BD 4,262 .
FTA Hosts Corporate Tax Awareness Workshop for Businesses in Sharjah
Date: 08 Nov, 2023
External URL: https://bit.ly/46XAt0G
Dubai November 8 2023:
Marking the sixth in-person event in the FTA’s awareness campaign focusing on ‘The General Principles of Taxation of Corporations and Businesses’, the workshop gathered more than 370 business sector representatives from Sharjah. This event was part of the ongoing awareness campaign which includes physical and virtual workshops to reach all businesses and stakeholders subject to Corporate Tax across the UAE. So far, the FTA has held in-person workshops in Abu Dhabi, Dubai, Ajman, Fujairah and Ras Al Khaimah.
The workshops cover pertinent topics such as the determination of taxable persons and exempt persons, Corporate Tax rates and tax periods and Small Business Relief, transitional rules and other topics that support an easy and accurate Corporate Tax compliance.
During the workshop, the FTA team spoke about the EmaraTax platform, which allows users to complete their registration by following a few simple steps. Taxpayers can also seek assistance from Tax Agents approved by the FTA. The FTA team also encouraged participants to benefit from its Virtual Tax Webinars which provides ongoing support for taxable persons in both Arabic and English covering various aspects of Corporate Tax.
FTA Releases Guide on Accounting Standards and Interaction with Corporate Tax
Date: 07 Nov, 2023
External URL: https://bit.ly/45Z2ynb
Dubai November 7 2023:
The guide is designed to provide general guidance on the interaction of Accounting Standards with Corporate Tax. It provides readers with an overview of:
- Preparation of financial statements;
- The cash basis of accounting;
- The realisation basis of accounting;
- Other adjustments under Article 20(2)(i) of the Corporate Tax law;
- Adjustments under the transitional rules.
For more information related to Accounting Standards that govern how particular types of transactions and events should be reported in Financial Statements, please refer to the official documentation released by the relevant standard setter/Accounting Standards board. For further information on IFRS, visit ifrs.org.
Who should read this guide?
This guide should be read by any Person that is responsible for preparing the Financial Statements of Taxable Persons for Corporate Tax purposes. It is intended to be read in conjunction with the Corporate Tax Law, the implementing decisions and other relevant guidance published by the FTA.
Saudi Arabia Warns Businesses to Pay Tax or Face Fines
Date: 06 Nov, 2023
External URL: https://bit.ly/3QMpBNC
Riyadh November 6 2023:
Saudi Arabia has called for businesses to pay tax by end of the week or face fines. The Zakat, Tax and Customs Authority (ZATCA) has urged taxpayers from the business sector in the Kingdom subject to the withholding tax (WHT) to file their tax returns for October at a date no later than November 12, 2023.
WHT is one regulation in the Kingdom whereby a tax is withheld from the total income of non-resident establishments that provide services in the Kingdom in accordance with the rates specified in Article 68 of the Income Tax Law and Article 63 of its Implementing Regulations.
Taxpayers may do so through the authority’s website to avoid a one per cent fine for unpaid taxes every 30 days after the due date.
FTA Issues Guide for Non-Resident Persons for Corporate Tax Purposes
Date: 04 Nov, 2023
External URL: https://bit.ly/3QwoZu0
Dubai November 4 2023:
Federal Tax Authority Issues Guide for Non-Resident Persons for Corporate Tax Purposes who derive State-Sourced Income in the UAE.
The Federal Tax Authority (FTA) has clarified the criteria for determining Non-Residents subject to Corporate Tax in the UAE; the instances that require registration of a Non-Resident for Corporate Tax purposes; Taxable Income and how it is calculated; as well as other requirements for compliance by Non-Residents subject to the Corporate Tax Law, which took effect on 1 June 2023.
The FTA included a comprehensive and simplified explanation along with general guidance in its guide for Non-Resident Persons, whether natural persons (individuals) or juridical persons (including public and private corporations) who derive income in the UAE to help them determine whether they are subject to Corporate Tax.
The FTA invited all Non-Resident Persons concerned, who derive income in the UAE, or those who conduct Business or part of their Business in the UAE to consult the new guidelines and refer to the Corporate Tax Law and relevant implementing Decisions.
Who should read this guide?
The guide should be read by any natural person or juridical person who is not considered to be a Resident Person as per the provisions of the Corporate Tax Law and is deriving any income from 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.
ZATCA Wins an International Award among the Top 3 Project Management Offices in the World
Date: 02 Nov, 2023
Riyadh November 2 2023:
The Zakat, Tax and Customs Authority, represented by the Project Management Office (PMO), received three awards at the Global Project Management Summit (Global Summit 2023) in Atlanta, Georgia, USA, which is organized annually by the Global Project Management Institute (PMI).
The first award was given to the Project Management Office of the Authority, which was named one of the top three project management offices in the world for 2023 (World PMO of the year). Based on the value that project management offices offer, the award is given to companies who demonstrate excellence in organizational capabilities for project management. A total of sixty-five international organizations competed for the award, highlighting the institutional importance of facilitating the implementation of plans and formulating a vision to augment value and attain a discernible and favourable impact on the performance of the organization.
The Authority’s Project Management Office was chosen in exchange for its efforts in handling numerous administrative and technical aspects. Since its establishment, the Office has continued in fulfilling its mandate to oversee transformational projects by putting best practices into practice, adhering to the Global Project Management Institute’s methodology to guarantee work of the highest standard, assisting in the efficient governance of the work system and monitoring projects in a way that has contributed to their extraordinary success.
FTA Issues Public Clarification on implementing Reverse Charge Mechanism on Electronic Devices Among UAE Registrants
Date: 26 Oct, 2023
External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.issues.public.clarification.on.implementing.reverse.charge.mechanism.on.electronic.devices.among.registrants.in.the.uae.aspx#:~:text=October%2025%2C%202023-,Federal%20Tax%20Authority%20Issues%20Public%20Clarification%20on%20implementing%20Reverse%20Charge,among%20registrants%20in%20the%20UAE&text=The%20Mechanism%20to%20be%20applied,purposes%20from%2030%20October%202023.
Dubai October 26 2023:
The Federal Tax Authority (FTA) and registrants for Value Added Tax (VAT) with the Authority are set to begin implementing a new decision on 30 October 2023, applying the Reverse Charge Mechanism (RCM) on supplies of electronic devices among tax registrants. In this regard FTA released a new Public Clarification on Application of the Reverse Charge Mechanism on Electronic Devices among Registrants in the State for the Purposes of Value Added Tax on its website.
The RCM will result in the liability for Value Added Tax (VAT) on supplies of electronic devices – such as mobile phones, smart phones, computer devices, tablets, and their parts and pieces – to be transferred from the registered supplier to the registered recipient provided they are supplied to a registered recipient for the purpose of being resold or used in manufacturing of electronic devices. The registered recipient will then be responsible for calculating VAT on those supplies, including it in their Tax Return, and meeting specific tax obligations related to these supplies.
The Authority noted that implementing the Mechanism is in line with Cabinet Decision regarding the Application of the Reverse Charge Mechanism (RCM) on Electronic Devices for VAT purposes, which comes into effect on 30 October 2023.
ZATCA Urges Taxpayers Not To Respond To Fraudulent Refund Messages
Date: 18 Oct, 2023
Riyadh October 18 2023:
The Zakat, Tax and Customs Authority called on its taxpayers and customers not to respond to any fraudulent refund or financial dues messages, or to any messages attempting to obtain personal or banking information. The Authority explained that such fraudulent practices seek to obtain personal and banking information via suspicious SMS claiming to receive requests to recover amounts paid to the Authority and requesting access to links to provide more information or fill out data forms, despite the fact that the Authority does not request access. It includes links in its SMS, and it does not ask for bank card information for payment except through the Authority’s website and the ZATCA app for smartphones.
The Authority urged the taxpayers and customers to use the Authority’s channels, including the unified number 19993 which operates 24/7 or on e-mail email@example.com or instant chats via the Authority’s website confirming that it receives all inquiries regarding its services through these channel.
ZATCA Participates in GITEX 2023 in Dubai
Date: 16 Oct, 2023
Riyadh October 16 2023:
The Zakat, Tax and Customs Authority (ZATCA) participates in the Gulf Information Technology Exhibition GITEX 2023, held at the World Trade Centre in Dubai, UAE until October 20, 2023. GITEX, in its 43rd edition this year, focuses on the use of Artificial Intelligence (AI) technologies in all fields, and is expected to witness a remarkable attendance of more than 100,000 visitors and more than 5,000 exhibitors from more than 170 countries.
During its participation in the GITEX exhibition, the Authority will display the qualitative development in its technical services through various electronic platforms, and its experience in developing smart systems for tax services in the Kingdom. The most prominent services on display are its successful E-invoicing system, and the digital platform FATOORAH.
The Authority is also reviewing its initiative in terms of facilitating customs procedures by expanding the customs clearance initiative within two hours, and the role of the FASAH platform in coordinating efforts between the various responsible authorities, in addition to reviewing the advantages of the digital services provided by the Authority through the real estate transaction tax platform.
FTA to Showcase its Digital Initiatives at GITEX Global 2023
Date: 14 Oct, 2023
External URL: https://bit.ly/45D0tx5
Dubai October 14 2023:
The Federal Tax Authority (FTA) is set to participate in the 43rd edition of the GITEX Global 2023 exhibition, which kicks off on October 16 and runs for five days at the Dubai World Trade Centre, with over 6000 exhibitors from more than 170 countries taking part.
The Authority will be showcasing updates regarding its ongoing projects, in addition to launching a range of new initiatives and services at its pavilion at the exhibition, in line with the government’s digital strategy. This is part of the FTA’s efforts to leverage advanced technologies to continually enhance its operational systems and digital services, in a bid to proactively meet the needs and expectations of taxpayers.
His Excellency Khalid Ali Al Bustani, Director-General of the FTA said “The Federal Tax Authority’s participation in the GITEX Global 2023 exhibition is in line with our plans to introduce diverse digital services and highlight the continuous development these services are undergoing. We aim to shed light on transformative projects that enhance taxpayers’ and stakeholders’ satisfaction with the tax system, which, in turn, supports our ongoing efforts to implement the wise leadership’s directives to achieve global leadership in the government sector and enhance the UAE’s competitiveness in all fields.”
Bahrain Government Rethinks Proposal to Tax Foreign Investment
Date: 12 Oct, 2023
Manama October 12 2023:
A RETHINK is being urged by the government on a proposed legislation to tax foreign investments.
Under the proposed legislation, the tax would apply to:
- Profits from any contractual agreement
- Profits from any share sale of the establishment or company
- Profits from product agencies signed in Bahrain or abroad
- Property lease or rent; arbitration, brokering or mediation
- Contractual licensing of trademarks to others
- Asset sale or liquidation
Investments below BD 10,000 would be exempt.
However, the levy would be applied annually as follows:
- Five per cent on investments between BD10,001 and BD50,000
- Ten percent between BD50,0001 and BD100,000
- Fifteen percent between BD100,001 and BD150,000
- Twenty percent between BD150,001 and BD250,000
- Twenty percent between BD250,001 and BD500,000 and thirty percent beyond that
Over 20,930 Participants Attend 108 Tax Awareness Events in 6 Months in the UAE
Date: 10 Oct, 2023
External URL: https://bit.ly/45C2zgo
Dubai October 10 2023:
The Federal Tax Authority (FTA) introduced several new initiatives in 2023 to benefit businesses and other stakeholders. Over 20,930 participants attended 108 Tax Awareness Events in 6 Months in the UAE. The events were organized both in-person and via video conferences in the first half of this year and the overall satisfaction level of the participants was 91 percent.
His Excellency Khalid Ali Al Bustani, Director General of the Federal Tax Authority, said “The expansion of our awareness channels is part of the comprehensive plans implemented by the Authority to support the increase in the number of services we provide to enhance tax procedures. These campaigns aim to promote the tax culture and inform taxpayers about the developments in the sector to provide an environment that is conducive to self-compliance.”
FTA Holds Awareness Workshop on General Principles of Corporate Tax in Fujairah
Date: 09 Oct, 2023
External URL: https://bit.ly/3RUkwnh
Dubai October 9 2023:
The Federal Tax Authority (FTA) has continued to conduct awareness campaigns covering the general principles of Corporate Tax to engage directly with business sectors across the UAE. So far a total of 1,780 participants have attended five in-person workshops organised by the FTA since July, in both Arabic and English, which were primarily arranged to raise awareness about the importance of Corporate Tax and its compliance requirements.
As part of this comprehensive campaign, the FTA held the latest workshop in Fujairah, attended by His Excellency Eng. Mohammed Obaid bin Majid, Director General of the Department of Industry and Economy in the Government of Fujairah, and H.E. Sultan Jemei Al Hindasi, General Manager of Fujairah Chamber of Commerce and Industry, along with officials from the public and private sectors.
The Fujairah workshop is the fifth in a series of in-person events conducted by the FTA as part of its campaign across all seven emirates. This forms part of the Authority’s intensive efforts to support and assist taxpayers in voluntary self-compliance with Corporate Tax, presenting them with simple and accurate procedures.
The awareness campaigns, launched in May with a series of virtual workshops on Corporate Tax registration, are set to continue until the end of the year. Meanwhile, the in-person events began in July with the first workshop in Abu Dhabi, followed by a workshop in Dubai, then Ajman, Ras Al Khaimah and now Fujairah.
FTA Collaborates with Umm Al Quwain Chamber to promote Tax Culture among Business Sectors
Date: 27 Sep, 2023
External URL: https://bit.ly/3Pz1xMr
Dubai September 27 2023:
The Federal Tax Authority (FTA) has signed a memorandum of understanding (MoU) with the Umm Al Quwain Chamber of Commerce and Industry to cooperate on promoting a tax culture among business sectors and contribute to the UAE’s strategy and vision to support the private sector, entrepreneurs and investors.
The agreement was signed by His Excellency Khalid Ali Al Bustani, Director-General of the FTA, and His Excellency Ammar Rashid Al Aleeli, Director-General of the Umm Al Quwain Chamber. Signed at the FTA’s headquarters in Dubai, the MoU forms part of the efforts to intensify tax awareness activities, and establishes a framework for collaboration between the Authority and the Chamber to organise more workshops and awareness sessions for business sectors, entrepreneurs, and investors, particularly in the Emirate of Umm Al Quwain, familiarising them with the objectives of the tax system and its implementation procedures.
H.E. Al Bustani said “The memorandum of understanding that the Federal Tax Authority has signed with the Umm Al Quwain Chamber of Commerce and Industry serves to establish effective frameworks for bilateral cooperation to continuously upgrade the services we provide to support and assist business sectors. This aligns with the Authority’s plans to create a tax environment that encourages compliance, in accordance with the highest governance and transparency standards, by implementing continuous awareness plans that target all business categories and familiarise them with tax legislation and procedures using diverse methods and providing clear information.”
ZATCA holds Awareness Workshops during its Participation in Law Week Activities
Date: 24 Sep, 2023
Riyadh September 24 2023:
The Zakat, Tax and Customs Authority (ZATCA) held a series of awareness workshops as part of its participation in the Law Week activities organized by the General Authority for Small and Medium Enterprises “Monsha’at” in cooperation with the Saudi Bar Association from September 17-20, 2023 in the cities of Riyadh, Jeddah, Al-Khobar, Medina and more.
The workshops were held under the title “Facilitations provided by the Zakat, Tax and Customs Authority to small and medium enterprises” with the aim of educating participants about the initiatives undertaken by the Authority to encourage entrepreneurship and efforts to facilitate and develop procedures through digitization and modern integrated solutions to support SMEs, thus contributing to the development of the national economy and increasing Tax compliance.
Saudi Arabia Issues Tax Warning
Date: 22 Sep, 2023
Riyadh September 22 2023:
Saudi Arabia issues strict tax warning to businesses- Settle your dues or face penalties.
Deadline to submit VAT statements
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has called on commercial sector establishments subject to value-added tax (VAT) and whose annual revenues on goods and services exceed SR 40m ($10.7m) to submit VAT statements for August by no later than September 30.
The Authority has emphasized the critical importance of settling outstanding tax obligations promptly as failure to do so will result in hefty fines. Compliance with tax regulations is not only a legal obligation but also essential for the smooth functioning of the nation’s financial ecosystem. Businesses are strongly advised to meet the VAT statement submission deadline.
ZATCA calls on its Taxpayers to Benefit from its APP Services
Date: 18 Sep, 2023
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.
FTA Release General Guide on Corporate Tax
Date: 15 Sep, 2023
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
Date: 13 Sep, 2023
External URL: https://bit.ly/3PxVQPT
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.
ZATCA announces Major Tax Fine Exemptions
Date: 10 Sep, 2023
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 (firstname.lastname@example.org), 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.
Oman, Russia sign Double Tax Agreement (DTA)
Date: 05 Sep, 2023
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.
FTA Renews Call for PJSCs and PSCs to Register for Corporate Tax
Date: 04 Sep, 2023
External URL: https://bit.ly/47ZfGe8
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.
FTA releases Guide on Small Business Relief
Date: 02 Sep, 2023
Dubai September 2 2023:
FTA releases Guide on Small Business Relief.
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
Date: 16 Aug, 2023
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.
Oman Exempts EVs from VAT
Date: 15 Aug, 2023
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.
FTA Issues Public Clarifications on Final VAT return and more for e-Commerce reporting
Date: 14 Aug, 2023
External URL: https://tax.gov.ae/en/taxes/Vat/guides.references.aspx
Dubai August 14 2023:
This is to update you that the FTA of UAE has recently issued certain user manuals on
- Process Final VAT return – VAT 201 (for e-Commerce reporting)
- VAT 201 – VAT Returns (for e-Commerce reporting)
- Submission of VAT Voluntary Disclosure (applicable for e-Commerce reporting)
- Resubmission of VAT Voluntary Disclosure for e-Commerce reporting (applicable for e-Commerce reporting)
FTA Releases Recording of Awareness Workshop on Taxation of Corporations and Businesses’
Date: 11 Aug, 2023
External URL: https://www.youtube.com/watch?v=agqWUYSH28c
Dubai August 11 2023:
FTA Releases Recording of the Workshop on ‘The General Principles of Taxation of Corporations and Businesses’ on their YouTube channel.
FTA stresses the Need for Accurate Emirate-specific VAT Reporting in Relation to e-Commerce
Date: 08 Aug, 2023
External URL: https://bit.ly/3rSubQg
Dubai August 08 2023:
The Federal Tax Authority (FTA) has stressed the need for taxpayers to abide by accurate, emirate-specific Value Added Tax (VAT) reporting requirements in relation to e-Commerce.
The Authority noted that recent updates to the VAT legislation in the UAE, specifically around the reporting of e-Commerce supplies result in additional obligations for a number of persons when preparing their VAT returns.
The FTA emphasized that businesses must carefully assess whether they fall under the new reporting obligations, noting that failure to comply or compliance with the updated reporting when not required may result in mistakes and expose companies to potential penalties.
Starting from 1 July 2023 and in the VAT return for the first tax period starting on or after that date, “qualifying registrants” are required to report supplies made through e-commerce in box 1 of their VAT Return, based on the Emirate in which the supply of goods or services is received by the customer. They are also required to retain the relevant supporting evidence. If a taxpayer is not a qualifying registrant or if a supply is not an e-commerce supply, then the taxable business must report its supplies in the Emirate where its fixed establishment related to the supplies made is located.
FTA's Corporate Tax Awareness Campaign records Remarkable Turnout from Business Sectors
Date: 07 Aug, 2023
External URL: https://bit.ly/47gqeoZ
Dubai August 07 2023:
The Federal Tax Authority (FTA) records a notable increase in the number of participants participating in its Corporate Tax Awareness workshops. The campaigns are organized to create awareness among tax payers since May 2023, and that is set to continue until the end of the year across the emirates.
The campaign aims to introduce business sectors to Corporate Tax and enable them to comply with the Federal Decree-Law on Taxation of Corporations and Businesses, which came into effect in June 2023 and applies to financial years starting on or after 1 June 2023.
More than 8,270 stakeholders involved in implementing Corporate Tax attended 22 in-person and virtual workshops organised by FTA over the past three months (May, June, and July). Around 19 virtual workshops (in Arabic and English) focused on Registering for Corporate Tax, and were attended by 6,927 representatives of public joint-stock companies and resident private companies across the UAE.
The virtual workshops were delivered via the dedicated awareness platform that FTA launched to provide information and support to all businesses subject to Corporate Tax. Additionally, FTA organised three in-person workshops in July on the General Principles of Taxation of Corporations and Businesses, held in Abu Dhabi, Dubai and Ajman, respectively, with 1,343 participants from various business sectors and entities involved in the tax sector.
ZATCA invites Establishments subject to Withholding Tax to submit Returns by August 10
Date: 06 Aug, 2023
Riyadh August 06 2023:
Zakat, Tax and Customs Authority (ZATCA) has called on establishments subject to withholding tax in the Kingdom to submit their tax returns for the month of July, no later than August 10.
The authority urged its taxpayers to quickly submit their tax returns through its website in order to avoid a fine for failing to pay within the specified period, at the rate of 1% of the unpaid tax for every thirty days of delay from the due date.
The withholding tax is one of the tax systems in force in the Kingdom that is deducted from the total income of a non-resident establishment in the Kingdom, in consideration of the services it provides inside the Kingdom, according to the percentages specified in Article Sixty-Three of the Income Tax Regulations.
ZATCA urges Tax Payers to Benefit from Exemption of Fines Initiative
Date: 05 Aug, 2023
Riyadh August 05 2023:
Zakat, Tax and Customs Authority (ZATCA) has called on tax payers in the Kingdom to take advantage of its ‘Exemption of Fines Initiative’.
Its Simplified Guide on Cancellation of Fines and Exemption of Financial Penalties released in June this year aims to lessen the burden of tax payers, which is part of the Authority’s initiative to mitigate the financial implication resulting from COVID-19 that affected establishments. This is for a period of seven months starting from June 1, 2023.
ZATCA Announces Extension of Cancellation of Fines and Exemption of Penalties until 31 December 2023
Date: 28 Jul, 2023
Dubai July 28 2023:
The Zakat, Tax and Customs Authority (ZATCA) announced the extension of the Cancellation of Fines and Exemption of Financial Penalties Initiative until 31 December 2023. ZATCA stated that the extension of the initiative, which was previously slated to end on May 31, 2023, is now extended from 1 June 2023 until 31 December 2023.
According to authority, the initiative exempts taxpayers from fines for late registration in all tax laws, delayed payments, overdue tax return filing in all tax laws, value-added tax (VAT) return correction, and field detection of violations of e-invoicing and VAT.
ZATCA urged all taxpayers to benefit from the initiative until the end of the extension term, and to contact the authority with any inquiries.
NBR conducts 375 Inspection Visits in the Kingdom
Date: 17 Jul, 2023
External URL: https://www.nbr.gov.bh/releases/160
Manama July 17 2023:
As part of its continuous monitoring efforts to protect the rights of consumers and enhance the level of tax compliance, The National Bureau of Revenue (NBR) carried out 375 inspection visits to local markets in various governorates of the Kingdom of Bahrain during the prior months.
These campaigns were carried out out of the Agency’s permanent keenness to enhance oversight of local markets in order to verify the compliance of commercial establishments. This includes the application of the digital stamp system on cigarette products and water pipe tobacco (Moassel) to ensure the extent to which shops are aware of the mechanism of applying the digital stamp system and the mandatory presence of these stamps on all cigarette products and water pipe tobacco (Moassel) in the local markets, and spreading the necessary awareness amongst shop owners.
Violators were imposed administrative fines in accordance with the law and may necessitate the closure of some stores. The tax authority is in the process of taking legal measures against the violating establishments, and referring those found guilty of crimes of evasion to the competent authorities to initiate a criminal case.
ZATCA launches Fresh Graduates Programs for 2023
Date: 15 Jul, 2023
Riyadh July 15 2023:
The Zakat, Tax and Customs Authority (ZATCA) has announced the launch of the Fresh Graduates Programs that include Binaa-Alkafaat (Capacity Building) and Ameen Programs. The high-quality programs seek to train and qualify fresh graduate Saudi talents in a professional work environment that allows them to acquire specialized professional experience and learn effective practical competitiveness in the Saudi labor market.
ZATCA has further elaborated that the Fresh Graduates Programs are implemented by ZATCA Academy in collaboration with the US Wharton School of the University of Pennsylvania and other prestigious academic institutions. The sixth edition of the Capacity Building Program is eager to attract fresh graduate Bachelor’s and Masters degrees holders with honors from Saudi and foreign universities in more than 25 disciplines. Some of the major disciplines covered by the training program include Legal Affairs, Risk Analysis, Operations, Zakat Consultations, Technological Systems and Digitization, Organizational Communications and more.
ZATCA has called on all interested persons to read the admission requirements for the programs on the Fresh Graduates Programs page on the Authority’s website. Admissions for the two programs are open till July 20.
NBR Bans Circulation of Shisha Tobacco Products without Digital Stamps from June 18, 2023
Date: 14 Jul, 2023
External URL: https://www.nbr.gov.bh/releases/159
Manama July 14 2023:
The National Bureau of Revenue (NBR) calls on all importers and traders in the local markets to deal in appropriate quantities and not to store shisha tobacco products (molasses) that do not carry digital stamps, so that the stock is liquidated before the set date of June 18, 2023.
This is in preparation for the commitment to prohibit the possession, circulation, supply or sale of any of Hookah tobacco products that do not contain digital stamps in local markets. Therefore, after the set date, any product in the supply chain will either be destroyed or transported outside the territory of the Kingdom of Bahrain if it does not carry a valid and activated digital stamp.
It is worth noting that the digital tax stamp is a control system whereby a dedicated stamp containing security features and codes are placed on excise goods in order to track them from the manufacturing stage to the point of consumption. This systems aims at reducing illegal trade and protecting consumers against the circulation of unlicensed and counterfeit products.
FTA and Abu Dhabi Police Collaborate to Seize Contraband Goods in Market
Date: 12 Jul, 2023
External URL: https://bit.ly/3Q2YePg
Dubai July 12 2023:
The Federal Tax Authority (FTA) held a meeting with the Abu Dhabi Police’s Special Patrol Department at FTA’s headquarters in Abu Dhabi to strengthen the strategic partnership between the two entities for the seizure of contraband goods that have not paid the taxes due.
The meeting was chaired by the Director of the Special Patrol Department, Lt Colonel Staff Pilot Zayed bin Hamad bin Hamdan Al Nahyan with H.E. Khalid Ali Al Bustani, Director-General of the Federal Tax Authority, and was attended by members of the FTA’s Compliance and Tax Enforcement Department and the Special Patrol and Department.
The meeting discussed the mechanisms to control contraband goods through campaigns by the FTA and Al Mirsad team overseeing Abu Dhabi, Al Ain and the Dhafra area. This is part of the FTA’s plans to contribute to strengthening market control by ensuring compliance with tax legislation, protecting legitimate trade and preventing sale of smuggled products and tax evasion.
The two entities will cooperate to control all goods that have not paid taxes due in Abu Dhabi, including tobacco and tobacco products, liquids used in electronic smoking devices and tools, electronic smoking devices and tools, soft drinks, energy drinks and sweetened beverages.
Oman and Russia Sign DTA Agreement
Date: 10 Jul, 2023
Muscat July 10, 2023:
The Sultanate of Oman and Russia Federation have signed an agreement to avoid double taxation and the prevention of tax evasion for income taxes in Muscat. On the Russian side, the document was signed by the Deputy Minister of Finance Alexey Sazanov, while in Oman the Chairman of the Tax Authority Saud Bin Nasser Al Shukaili signed on behalf of the government.
The agreement is aimed at the legal protection of investors from double taxation and the regulation of taxation between the two countries. This move is an important step and will contribute to the expansion of investment, trade exchange and boost bilateral economic cooperation of both countries.
Meanwhile, Oman has signed more than 38 taxation agreements with friendly countries to expand the scope of investments and trade exchange.
UAE FTA Rolls Out Corporate Tax Public Awareness Campaigns
Date: 06 Jul, 2023
External URL: https://bit.ly/3rkJsJC
Dubai July 06 2023:
The Federal Tax Authority (FTA) has announced the launch of a public awareness campaign to help taxpayers understand and meet their obligations under the Corporate Tax Law.
The public awareness campaign includes a range of activities, with a series of physical and virtual workshops, to be held across the UAE and online starting from 12 July 2023. The sessions aim to maximise tax awareness and reach as many taxpayers as possible. The workshops reflect FTA’s key role as the competent authority responsible for the administration, collection and enforcement of federal taxes.
FTA Director General, Khalid Ali Al Bustani, said, “FTA has a central role and vested interest in ensuring that taxpayers and other parties understand their obligations under the Corporate Tax Law. This awareness campaign marks the beginning of a new era of preparing the business community to implement and comply with the Corporate Tax Law in such a manner that will sustain confidence in the UAE’s tax system as well as the FTA’s tax administration in line with international best practices.”
FTA invites all taxable persons and representatives of corporate legal, accounting, and financial departments to join the upcoming workshops on General Corporate Tax Principles.
ZATCA provides Option to Calculate VAT on Profit margin of the Sale of Used Cars
Date: 04 Jul, 2023
External URL: https://www.arabnews.com/node/2331321/business-economy
Riyadh July 4 2023:
The Zakat, Tax and Customs Authority (ZATCA) made it possible to calculate the VAT on the profit margin of the sale of ‘qualified used cars’, without it being on the total sale value, starting from 1 July 2023.
ZATCA stated that allowing the tax to be calculated on the ‘profit margin’ comes in as an effort to reduce the amount of VAT on ‘qualified used cars’. The Authority further clarified that the ‘profit margin’ method targets car agencies and showrooms registered with ZATCA for VAT purposes, and who can practice car trading activities subject to certain conditions.
ZATCA stresses that the method of calculating VAT on the profit margin is not mandatory (i.e. the tax can be applied on the entire amount due according to the method currently applied.) Further ZATCA confirmed that in order to apply the profit margin method, certain conditions are required to be met. Amongst them, the most prominent conditions are:
- The car must be classified as a ‘qualified used car’ by ZATCA.
- The car must be present, and previously used in the Kingdom.
- The seller must be registered with ZATCA for VAT.
Further, those who are licensed to practice the activity of car trade must also obtain approval from ZATCA in order to be considered qualified to use the profit margin method on qualified used cars.
NBR Updates VAT General Guide and Financial Services Guide
Date: 03 Jul, 2023
Manama July 3 2023:
The National Bureau for Revenue (NBR) updated the following value added tax (VAT) guides on 14 June 2023. The main updates are on the Treatment of Supply of Investment – Grade Gold.
The guides are uploaded on the NBR Site. Click the links below to view the updated guides.
Oman: OTA Calls on all VAT Registrants to Abide by the Provisions of the VAT Law
Date: 26 Jun, 2023
Muscat June 26 2023:
Oman Tax Authority (OTA) has called on all VAT registrants to abide by the provisions of the VAT Law, submit tax returns on the specified dates and disclose the tax.
It should be noted that in the event of non-compliance for VAT registration for those whose annual revenues or supplies exceed OMR 38, 500, or if the tax return does not include the real data of VAT, it is considered a crime under the text of Article (101) of the Value Added Tax Law No.121/2020 and is punishable by imprisonment for a period of up to three years and a penalty of up to OMR 20, 000.
Moreover, failure to submit a tax return for any tax period, failure to issue a tax invoice or failure to keep tax invoices are also considered as a crime under Article (100) of the Value Added Tax Law and is punishable by imprisonment that may reach one year and a penalty of OMR 10,000.
It is worth mentioning that the Tax Authority has started widespread awareness campaigns targeting all taxpayers in various governorates of the Sultanate of Oman to comply to the Tax Laws in order to preserve their rights and avoid getting penalized.
UAE: FTA becomes world’s first government tax authority to achieve Corporate Ethical Procurement and Supply Certificate
Date: 22 Jun, 2023
External URL: https://bit.ly/3rFssh1
Dubai June 22, 2023:
The Federal Tax Authority (FTA) has become the world’s first government tax authority to receive the Corporate Ethical Procurement and Supply Certificate – a new international accreditation for the Authority, underlining its commitment to best practices and efficiency standards in its procurement and supply systems.
His Excellency Khalid Ali Al Bustani, Director General of the FTA, received the certificate from Sam Achampong Regional Head of the Middle East & North Africa (MENA) in a ceremony held at the Museum of Union in Dubai, and attended by FTA officials and representatives of the Chartered Institute of Procurement and Supply.
The Institute issued a statement on this occasion confirming that “The Federal Tax Authority is the first government tax agency in the world to obtain the Corporate Ethical Certificate in Procurement and Supply since the establishment of the Chartered Institute of Procurement and Supply about 90 years ago. Given the importance of this achievement, the Authority was added to the corporate ethical register that follow the best professional standards in procurement and supply.”
ZATCA, Mawani & GACA Sign Deal to Boost Air-Sea Connectivity
Date: 12 Jun, 2023
Riyadh June 12 2023:
The Saudi Ports Authority (Mawani), the General Authority of Civil Aviation (GACA), and the Zakat, Tax and Customs Authority (ZATCA) have signed a Memorandum of Understanding (MoU) to enhance air-sea logistics connectivity and ensure a seamless flow of goods across the Kingdom of Saudi Arabia (KSA).
The deal aims to upgrade the Kingdom’s logistics and customs services and boost the nation’s foreign trade and economic development. This will be done by integrating freight operations at air and sea terminals, simulating cargo transportation scenarios to identify and address any underlying challenges hindering a smooth delivery of service, and leveraging the country’s strategic geographical position.
Oman Tax Authority Grants Tax Exemptions for Electric Vehicles
Date: 10 Jun, 2023
Muscat June 10 2023:
The Oman Tax Authority made a significant announcement regarding Electric Vehicles (EVs) and EV parts in the sultanate. As per the new directives, electric vehicles and hydrogen powered vehicles will be exempted from VAT and customs tax. To qualify the vehicle must be registered in Oman as an electric car or a zero-emission vehicle. The vehicle must also meet the approved specifications and standards in Oman.
This move aims to encourage the adoption of eco-friendly vehicles and support sustainable transportation in the country.
FTA Launches Corporate Tax Workshop Platform
Date: 05 Jun, 2023
Dubai June 05 2023:
UAE’s Federal Tax Authority (FTA) has unveiled a dedicated ‘Corporate Tax Virtual Workshops’ awareness platform, which seeks to provide knowledge and support for taxpayers who are subject to corporate tax. The new feature forms part of the steps the FTA has taken to ensure a smooth implementation of the corporate tax law that came into effect at the beginning of this month and aims to strengthen the country’s position as a leading global centre for business and investment.
On this new platform, the FTA offers educational materials, currently including 13 virtual awareness workshops in both Arabic and English about registration for corporate tax. The workshop series is set to continue throughout June with two workshops weekly. The workshops are targeted at participants who are subject to corporate tax as well as other stakeholders.