VAT’s UP

VAT’s UP

ZATCA urges Zakatpayers to Give Zakat through ZAKATY App

Date: 13 Jun, 2024

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External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1250.aspx

Riyadh June 13 2024:

The Zakat, Tax, and Customs Authority (ZATCA) has urged zakatpayers to “voluntarily” make their zakat through the ZAKATY Mobile Application or through the Zakaty website (zakaty.gov.sa).

ZATCA stated that the service allows individuals to make their zakat through safe payment methods approved by banks, such as SADAD and Apple Pay services, in a way that ensures fast and flexible service.

ZATCA confirmed that all amounts received through the service were directed to Social Security beneficiaries registered with the Ministry of Human Resources and Social Development. ZAKATY allows Zakatpayers to select the eligible Social Security beneficiaries.

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FTA Issues Clarification on Registration Timelines for Taxable Persons for Corporate Tax

Date: 12 Jun, 2024

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External URL: https://bit.ly/4enPDAr

Abu Dhabi June 12 2024:

The Federal Tax Authority (FTA) has issued a Public Clarification on the Registration Timelines for Taxable Persons for Corporate Tax, to further explain and clarify the specific deadlines for the different categories of Taxable Persons subject to Corporate Tax, and to encourage them to submit their Tax Registration application to the FTA.

The Public Clarification includes a comprehensive analysis and examples to help Taxable Persons understand how the timelines apply to their specific category. The FTA encourages all affected Persons to adhere to the specified timelines to ensure compliance and avoid any penalties. Therefore, it is crucial for all Taxable Persons to review the Public Clarification and ensure timely submission of their Corporate Tax Registration applications.

According to the Public Clarification, all Taxable Persons are required to submit a Tax Registration application to the FTA by the specified deadlines. Non-compliance will result in an administrative penalty of AED 10,000.

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FTA's Innovation Team Organises Workshop to Explore Sustainable Development of Tax Services

Date: 09 Jun, 2024

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External URL: https://bit.ly/3z3EAMM

Abu Dhabi June 09 2024:

Federal Tax Authority’s Innovation Team organises workshop to explore sustainable development of tax services in line with UAE’s Zero Government Bureaucracy Programme. His Excellency Khalid Ali Al Bustani, Director General of the Federal Tax Authority (FTA), asserted that the Authority is continuously launching more initiatives to speed up tax procedures, as part of the UAE’s Zero Government Bureaucracy Programme, which aims to reduce the duration of government services by 50%.

H.E. Al Bustani noted that the FTA is intensifying its efforts to introduce new services and facilities, further minimising procedures, and reducing service completion times, in line with the Programme’s objective to eliminate 2,000 government procedures in a year’s time.

The FTA Director General made his statement during a workshop organised by the Innovation Team at the Federal Tax Authority, in collaboration with the 01Gov platform, a distinguished partner in government innovation. The workshop focused on the Zero Government Bureaucracy Programme, outlining effective ways for participants to contribute to it. H. Khalid Al Bustani inaugurated the workshop, which was attended by Mr. Jassim Al Zarooni Chief , Innovation Officer

H.E. Al Bustani called on all stakeholders to come forward with ideas and suggestions for the sustainable development of tax services, line with the Zero Government Bureaucracy Programme, which aims to enhance efficiency, quality, and flexibility, while streamlining and reducing government procedures, and eliminating unnecessary steps and requirements.

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ZATCA Wins Award for Managing 'Supplier Relations' during the 2024 CIPS Awards

Date: 19 May, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1239.aspx

Riyadh May 19 2024:

​The Zakat, Tax and Customs Authority won the award for the best initiative in managing supplier relationships in the Middle East and North Africa, during the ‘CIPs MENA’ conference for procurement and supply chains, which was hosted by the Spending Efficiency and Government Projects Authority in Riyadh. The Authority won the award in the ‘Supplier Relationship Management’ category for its initiative of creating a portal that enables its suppliers to complete all the requirements of the contractual relationship with the Authority electronically through the portal, which contributes to improving the efficiency and effectiveness of procurement processes.

The award was presented in the presence of an elite group of specialists and decision makers in the field of procurement and supply chains in the government and private sectors, and technical systems companies specialized in this field.

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UAE Muwafaq Package Reports 4.5% Increase in Registration

Date: 16 May, 2024

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External URL: https://bit.ly/3wLocQ5

Abu Dhabi May 16 2024:

The Federal Tax Authority (FTA) reported a notable increase in the number of registrants benefiting from the diverse services, incentives, and privileges provided by the Muwafaq Package, which was launched to facilitate business operations and tax compliance for the small and medium-sized enterprises (SMEs) sector, indicating significant positive results for the Package in its first year.

The Authority revealed that the number of subscribers to the Muwafaq Package from the SMEs sector increased to nearly 54,000 by the end of 2023, marking a 4.5% growth from the 51,660 beneficiaries it had at its launch in March 2023. The FTA also indicated that outgoing calls from the Authority to Muwafaq Package subscribers over the past year amounted to 43,990, while the Muwafaq platform recorded 1,660 visits and 6,400 clicks, with 142 appointments being booked through the platform.

The FTA clarified that these indicators highlight a significant interest in the Muwafaq Package from stakeholders in the tax sector, with the platform reporting a 96% satisfaction rate among users. The Authority posted five videos on its Instagram page to introduce the Package, which recorded over 1.23 million views.

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FTA Announces Companies in the UAE must be Tax Complaint by May 2024 or Risk AED 10000 Penalty

Date: 13 May, 2024

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External URL: https://twitter.com/uaetax/status/1773664056584368549/photo/3

Abu Dhabi May 13 2024:

Tax payers are reminded that Corporate Tax Registration is Mandatory regardless of VAT registration status, turnover threshold, geographical presence (Mainland or Free Zone), or financial performance (profit/loss) in the UAE. The deadline for registration is May 31, 2024 depending on the trade license issue date. If you miss the deadline, you could be facing an AED 10,000 ($2700.00) fine.

The tax are based on the date their licence was issued. According to the tax authority, if a person has a licence issued in January or February (irrespective of the year), such person shall submit a tax registration application by May 31, 2024. In case a person does not have a licence on March 1, 2024, such a person shall have three months to submit a tax registration application until May 31, 2024.

CorporateTax Deadline

ZATCA Carried Out More Than 15000 Inspection Visits During April

Date: 11 May, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1237.aspx

Riyadh May 11 2024:

The Zakat, Tax and Customs Authority carried out more than 15000 inspection visits during the month of April, to markets and shops in various regions and cities of the Kingdom.

The Authority explained that the visits carried out by its supervisory and inspection teams in cooperation with the National Program to Combat Commercial Concealment included a number of commercial sectors, most notably: Retail, Gold, and Commercial Complexes.

The Authority indicated that the most prominent violations monitored by the supervisory teams were:

  • Not including a quick response code in the electronic invoice.
  • Not having tax stamps.
  • Not issuing electronic debit or credit notices, in addition to the violation of not issuing an electronic tax invoic

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ZATCA Invites Establishments Subject to the Selective Goods Tax to Submit Returns for March and April

Date: 09 May, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1236.aspx

Riyadh May 09 2024:

Selective goods tax is one of the tax systems in force in the Kingdom, which is imposed on goods that have negative effects on public health or the environment in varying proportions, and includes soft drinks, energy drinks, sweetened drinks, tobacco and its deravitives.

The Authority urged establishments to quickly submit their returns through the website ( zatca.gov.sa ), to avoid a fine for late submission of the return within the specified period, at the rate of 5% of the value of the tax that should have been declared for every 30 days of delay in submitting the return.

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UAE FTA Carries Out 39,470 Inspection Visits in 2023

Date: 05 May, 2024

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External URL: https://bit.ly/44AuCOF

Abu Dhabi May 05 2024:

The Federal Tax Authority (FTA) has intensified its supervisory efforts, in collaboration with various relevant entities, in a bid to protect consumer rights, combat tax evasion, and enhance tax compliance.

In 2023, the Authority carried out 39,470 inspection visits through 211 campaigns in local markets across all emirates of the UAE, marking an annual increase of 80.71% in the number of visits, as well as an 86.73% growth in the number of campaigns conducted, compared to 2022, which saw the FTA carry out 21,840 field visits through 113 inspection campaigns.

The Authority asserted that these campaigns form part of its plans to enhance market control by intensifying inspection visits to markets across the country, in order to ensure compliance with tax laws, legislation, and procedures, in addition to combating commercial fraud and preventing the sale of sub-standard or counterfeit products that negatively affect quality of life.

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MBR Holds a Workshop on Compliance with Value-added Invoice Requirement

Date: 01 May, 2024

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External URL: https://www.nbr.gov.bh/releases/178

Manama May 01 2024:

The National Bureau of Revenue organized a workshop on compliance with the requirements of value-added invoices, which comes as part of the agency’s efforts to promote awareness-raising about everything related to value-added and the mechanisms that must be applied when issuing value-added invoices.

This workshop comes within the framework of the Agency’s keenness to achieve the maximum levels of effectiveness in everything related to the application of value added, and its constant interest in continuing to enhance awareness among all relevant parties. The workshop received fruitful interaction with the attendance of 159 participants from those subject to value added, and included a number of different topics.

The Authority indicated that it continues to organize workshops periodically to spread awareness and provide the necessary support to those subject to it, calling on those wishing to join to fill out the registration form available on the National Bureau of Revenue website.

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Saudi Arabia Calls On taxpayers to submit VAT Returns or Face Fines

Date: 24 Apr, 2024

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External URL: https://bit.ly/3xRTKEh

Riyadh April 24 2024:

Saudi Arabia has issued a VAT reminder to taxpayers, telling them to submit returns or face fines in the Kingdom.

The Zakat, Tax, and Customs Authority (ZATCA) has issued a reminder to all enterprises subject to value-added tax (VAT) with annual supplies exceeding SR 40m ($10.7m) to submit their VAT returns for the month of March. Additionally, enterprises with annual supplies below SR 40m ($10.7m) are urged to file their VAT returns for the first quarter of 2024 by April 30.

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ZATCA Carried More Than 13,000 Inspection Visits in March

Date: 17 Apr, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1228.aspx

Riyadh April 17 2024:

The Zakat, Tax and Customs Authority (ZATCA) carried out more than 13,000 inspection visits during the month of March 2024 to markets and shops in various regions and cities of the Kingdom.

The Authority explained that the visits carried out by its supervisory and inspection teams in cooperation with the National Program to Combat Commercial Concealment included a number of commercial sectors, most notably: retail, tobacco, the nutrition sector, and car sales. The Authority indicated that the most prominent violations monitored by the supervisory teams were: not including a quick response code in the electronic invoice, not having tax stamps, not issuing electronic debit or credit notices, in addition to the violation of not issuing an electronic tax invoice.

The Authority stated that these visits aim to enhance the level of compliance with the provisions of the tax systems in force in the Kingdom, among taxpayers from the business sector, and to limit commercial transactions that violate the instructions and controls that fall within the authority’s jurisdiction.

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ZATCA: April 29 The Last Date for submitting Zakat Returns & Income Tax Returns

Date: 16 Apr, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1227.aspx

Riyadh April 16 2024:

The Zakat, Tax and Customs Authority clarified that the last date for submitting zakat returns for establishments and income tax returns for foreign establishments is April 29, 2024 AD, for the fiscal year ending on December 31, 2023 AD .

The Authority explained that this comes in implementation of Article 60 of the Income Tax Law for Foreign Companies, which includes “the obligation to submit the tax return within one hundred and twenty days from the end of the tax year that the return represents,” and in accordance with the text of Article 17 of the Executive Regulations for Zakat Collection, that every taxpayer must submit the return and its attachments and pay Zakat according to the forms and procedures of the Authority, within a period not exceeding (120) days from the end of the zakat year, and if the end of this period falls on an official holiday, it extends to the first working day thereafter.

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Bahrain Extends VAT Record Retention Period to 10 Years

Date: 07 Apr, 2024

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External URL: https://bit.ly/3w1e0Ti

Manama April 07 2024:

The NBR notified taxpayers via email and an announcement on its webpage that the record retention requirement for Value-Added Tax has been extended from five to ten years. The initial five year record retention period for the 1 January 2018 – 31 March 2018 tax period (Q1 2018) would have lapsed as of 31 March 2024, but now has been extended to 31 March 2029.

It will be important for taxpayers to update their internal data and documentation policies and procedures to allow for the extended recorded retention period. The extension of the record retention period may signal a potential extension of the statute of limitation period, increasing the Tax Authority’s opportunity to undertake investigations and audits of the taxpayer’s historical tax submissions.

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FTA Urges Business Sectors to Share Suggestions for Sustainably Developing Tax Services

Date: 04 Apr, 2024

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External URL: https://bit.ly/3W9NLVl

Dubai April 04 2024:

The Federal Tax Authority (FTA) has called on business sectors to share their ideas and proposals for sustainably developing the Authority’s services; keeping pace with the Zero Government Bureaucracy Programme launched by the UAE Government; and boosting efficiency, quality, and flexibility, while streamlining government procedures and doing away with unnecessary requirements.

The Authority hosted a Suhoor event for representatives of various business sectors across the UAE, attended by His Excellency Khalid Ali Al Bustani, FTA Director General, and H.E. Mohammed Abdul Rahman Al Hawi, Undersecretary of the Ministry of Investment, along with several FTA officials. The event formed part of the Authority’s efforts to strengthen collaboration and continuous communication with its partners in both the government and priVate sectors.

During the gathering, attended by more than 210 representatives of large companies, SMEs, and government entities, H.E. Khalid Al Bustani stressed the importance of continuous communication between FTA representatives and all business sectors, in order to understand their opinions and highlight their contributions to the sustainable development plans that the Authority has set for its services and procedures.

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EmaraTax Smart Tax Services Application: A Landmark App

Date: 02 Apr, 2024

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External URL: https://bit.ly/49GRnBi

Dubai April 02 2024:

The Federal Tax Authority (FTA) asserted that providing the EmaraTax application for smart tax services to users was a landmark step towards enhancing the quality of the Authority’s services, noting that the app, which was launched in October 2023 at the 43rd GITEX GLOBAL, builds on the FTA’s efforts under its comprehensive strategy to drive digital transformation across all of its services, facilitate voluntary tax compliance, and provide proactive services to taxpayers.

The Authority explained that the EmaraTax application can be downloaded to smartphones through the Apple App Store and Google Play. The FTA noted that users have carried out over 4,570 operations through the app, which provides a wide range of digital services to taxpayers to enable users to manage their tax operations with precision, speed, efficiency, and transparency.

The FTA asserted that the EmaraTax application is continuously updated to keep pace with the FTA’s plans for the continuous development and expansion of its services, noting that customers can carry out procedures related to Value Added Tax (VAT) and Excise Tax through the app, which offers innovative solutions that allow them to easily access the Authority’s services from anywhere and at any time.

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Registration for Corporate Tax now available through Government Service Centers

Date: 25 Mar, 2024

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External URL: https://bit.ly/3IN4XIt

Dubai March 25 2024:

The Federal Tax Authority (FTA) has made the service to submit Corporate Tax registration requests available through 23 Government Service Centres located across the UAE. Enabling taxpayers to submit corporate tax registration requests through Government Service Centres allows them to register directly via the “EmaraTax” platform – a digital tax service that operates 24/7. In addition, taxpayers can also seek assistance from these accredited tax agents.

The FTA said the new initiative is part of the expansion of its service channels to encourage tax compliance by providing an environment that facilitates access to services. It allows taxpayers to submit a request for Corporate Tax registration with assistance from experts in Government Service Centres, which offer electronic services that meet government standards. These centres are managed by qualified staff to ensure quality service delivery.

The FTA signed cooperation agreements to accredit several government service centres. Browse the list of accredited centres that are authorised to offer Corporate Tax registration request services.

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Oman Tax Authority Continues to Spread Awareness on Taxation

Date: 18 Mar, 2024

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External URL: https://bit.ly/3Pxb876

Muscat March 18 2024:

The Salalah Tax Authority recently organized a seminar on “Tax Laws and Legislations for Special Economic and Free Zones” at Salalah Free Zone targeting employees from Salalah and Al Mazunah Free Zones. This comes as a part of the Tax Authority’s efforts to educate Special Economic and Free Zones about tax laws and related processes like exemption terms, and filling and following up procedures applied for those zones.

During the seminar, participants received a better insight on the definition of Free and Economic Zones, the tax registration process in the Sultanate of Oman, and tax treatment for special zones. At the end of the seminar, the Tax Authority answered all rising questions and queries as well as reviewed the e-services provided at the online portal of the Tax Authority.

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World Customs Organization Praises ZATCA for Implementing the 'Clearing Withing 2 Hours Initiative'

Date: 16 Mar, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1216.aspx

Riyadh March 16 2024:

The World Customs Organization praised the Kingdom’s efforts in the clearance within two hours initiative, which was implemented by the Zakat, Tax and Customs Authority (ZATCA) in all its land, sea and air customs ports as part of its efforts to make the Kingdom a global logistics platform.

The organization published a detailed report reviewing the stages of implementing the initiative, the digital transformation efforts and the ongoing coordination between the concerned parties that contributed to the success of the initiative. The report also stated that the processes of clearing imported shipments through ports in the Kingdom five years ago were a long process that could take importers up to 12 hours. One day and on average 8 days, which confirms the efforts of the Zakat, Tax and Customs Authority in facilitating customs procedures and enhancing the flexibility of import and export operations to facilitate trade in the Kingdom through the Al-Fasah initiative within two hours.

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Saudi Arabia Offers exemptions on Tax Fines

Date: 15 Mar, 2024

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External URL: https://bit.ly/4aeG6J7

Riyadh March 11 2024:

Saudi Arabia offers exemptions on tax fines and the Saudi Authorities has urged taxpayers to make use of waivers on fines and penalties in the Kingdom before July. Taxpayers in Saudi Arabia have a little over three months to avoid paying tax-related fines and other financial penalties, authorities said.

The Zakat, Tax and Customs Authority (ZATCA) urged all those who are required to pay taxes to take advantage of the government’s “cancellation of fines and exemption of financial penalties” initiative, which expires on June 30, 2024, according to the state-owned Saudi Press Agency.The fines and penalties are related to late registration, late payment, late submission of tax returns and incorrect VAT returns, among others.

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The FTA Approves 27,330 Refund Requests for UAE Nationals Building New Residences

Date: 11 Mar, 2024

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External URL: https://bit.ly/3IDLTMI

Abu Dhabi March 11 2024:

The Federal Tax Authority (FTA) has reported a significant increase in the number of individuals who have benefited from the value-added tax (VAT) refund service for UAE nationals building new residences. The FTA stated that from the beginning of the service in 2018 until the end of last year, over 27,330 applications were approved for male and female UAE nationals, who were refunded the VAT they paid for building new residences. The total value of these applications exceeded AED 2.02 billion.

The FTA announced that the number and total value of approved applications have been continuously increasing. Statistics showed that the number of approved applications increased from 270 in 2018, valued at AED 9.11 million to 1,900 applications in 2019, with a total value of AED 121.46 million.

The number of approved applications further grew to 3,750 valued at AED 301.35 million, marking a significant growth of 97.16 percent in approved applications and 148.1% in tax refund value in 2020.

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The UAE Ministry of Finance Introduces a Dh 10,000 Penalty for Late Corporate Tax Registration

Date: 02 Mar, 2024

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External URL: https://bit.ly/3UXhdxf

Dubai March 02 2024:

The Ministry of Finance today announced the issuance of Cabinet Decision No. 10 of 2024, amending the schedule of violations and administrative penalties of Cabinet Decision No. 75 of 2023 on the administrative penalties for violations related to the application of Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses. Cabinet Decision No.10 of 2024 will come into effect on March 1, 2024.

The Ministry stated that an administrative penalty of AED 10,000 for late registration of UAE Corporate Tax will be imposed on businesses that do not submit their Corporate Tax registration applications within the timelines specified by the Federal Tax Authority.

For registering before the deadline or clarifying your queries send an email to enquiry@legendsaccounting.com or WhatsApp us

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FTA issues New Decision on Specified Timeframes for Corporate Tax Registration

Date: 01 Mar, 2024

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External URL: https://bit.ly/4bZLxNB

Dubai March 01 2024:
The Federal Tax Authority (FTA) has specified timeframes for Taxable Persons subject to Corporate Tax to apply to register with the FTA and avoid being in violation of tax laws. The timeframes were outlined in a new Decision issued by the FTA regarding the deadlines to apply for registration under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, which came into effect in June of last year and applies to Tax Periods starting on or after June 1, 2023.

Effective from March 1, 2024, the new FTA Decision defines timeframes for applying to register for Corporate Tax that apply to juridical persons and natural persons, that are either Resident Persons or Non-Resident Persons.

The Decision indicates that a juridical person that is a Resident Person incorporated, established, or otherwise recognised prior to March 1, 2024 must apply to register for Corporate Tax within the following timeframes:

The FTA stressed the importance of submitting Corporate Tax registration applications in accordance with the timeframes specified in the Decision. It added that taxable persons with licenses issued in January and February regardless of the year license was issued, must submit their Corporate Tax registration applications no later than May 31, 2024, to avoid tax law violations.

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FTA Secures Accreditation as a Certified Government Innovative Organisation

Date: 27 Feb, 2024

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External URL: https://bit.ly/48Cgchc

Dubai February 27 2024:

FTA has been honoured with the prestigious title of “Certified Government Innovative Organisation – Advanced Level” by the esteemed Global Innovation Institute (GInI), a specialised entity in innovation assessment for organisations granting professional certifications, accreditations and membership in the field of innovation.

This milestone coincides with the FTA’s active engagement in the events of “UAE Innovation Month 2024” which ran throughout the month of February.

The acquisition of the prestigious “Certified Government Innovative Organisation” certificate, endorsed in the United States and exclusively crafted for governmental bodies, signifies the Federal Tax Authority’s remarkable strides in innovation and development. This accolade underscores the Authority’s commitment to pioneering advancements and signals its unwavering dedication to pushing the boundaries in the realms of innovation and progress.

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FTA Signs Agreement with 01GOV Platform to Expand Use of its Tax 10 Platform

Date: 22 Feb, 2024

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External URL: https://bit.ly/48r9Uks

Dubai February 22 2024:

As part of its agenda for the ‘UAE Innovates 2024’ initiative, held throughout the month of February, the Federal Tax Authority (FTA) signed a collaboration agreement with the 01GOV Platform, in an effort to expand the use of its own TAX 10 platform.

The Authority launched Tax 10 last year to encourage innovation, promote institutional excellence and professional creativity among its employees, in a bid to ultimately upgrade its services, drive sustainable development and promote a culture of innovation.

The agreement forms part of the FTA’s community contribution during the monthlong ‘UAE Innovates 2024’ initiative. The Authority aims to encourage cooperation among various government entities, local academic institutions and tax authorities across the region in order to enhance innovation in the public sector and provide a model for using advanced technology to upgrade government services.

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Saudi Arabia Grants 30-Years Tax Relief to MNCs with HQ in its Country

Date: 20 Feb, 2024

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External URL: https://www.newarab.com/news/saudi-arabia-gives-tax-breaks-foreign-firms-new-hqs

Riyadh February 20 2024:

In a new step towards attracting foreign investments and global companies, the Saudi Arabian official Gazette has announced its plans to grant 30 years of tax relief to multinational companies (MNCs) establishing regional headquarters in the Gulf kingdom.

The Ministry of Investment of Saudi Arabia, in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority today announced 30-year tax incentive package for The Regional Headquarters (RHQ) Program, to further streamline the process for MNCs to establish their RHQ in the country. The offer includes a 0 percent corporate tax and withholding tax rate for 30 years, which will be applied for companies from the day they obtained their RHQ license.

The tax relief granted to multinational companies establishing headquarters in the country comes before a January 1 deadline to open such branches in Saudi Arabia. The program aims to attract MNCs to set up their RHQ in Saudi Arabia and position the Kingdom as the leading commercial, industrial and investment hub for the MENA region.

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ZATCA Records 6 Million Customs Declaration and More Than 1 Million Zakat & Tax Declarations

Date: 12 Feb, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1200.aspx

Riyadh February 12 2024:

The Zakat, Tax and Customs Authority, through its land, air and sea ports, processed about 6 million customs declarations for the Kingdom’s imports and exports during the year 2023, amounting to more than 2.3 million containers, while the number of zakat and tax declarations for the authority’s taxpayers reached more than 1.6 million zakat declarations.

At the level of enhancing the security aspect, seizures across all customs ports during the year 2023 amounted to more than 50,000 seizures, including all prohibited items that the Authority thwarted in an attempt to smuggle them into the Kingdom.

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Kuwait, UAE Sign Double Taxation Agreement

Date: 11 Feb, 2024

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External URL: https://bit.ly/3HVnUbv

Kuwait City February 11 2024:

Kuwait and the United Arab Emirates have signed an agreement to avert double taxation between the two countries, Kuwait News Agency (KUNA) reported.

In its statement, Kuwait’s Ministry of Finance said the final agreement between the two regarding taxes on income on capital and to prevent tax evasion and avoidance had been signed.

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FTA Earns ISO Certificate for Implementing International Standard in its Innovation Management System

Date: 09 Feb, 2024

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External URL: https://bit.ly/42UXCQp

Abu Dhabi February 09 2024:

The innovation management system of the Federal Tax Authority (FTA) has earned a new international accreditation, in recognition of it implementing global best practices and standards that enhance the effectiveness and efficiency of innovation management.

The Authority has been awarded the ISO 56002:2019 certificate, confirming its success in implementing the international standard for innovation management. This achievement coincides with the FTA’s participation in the month long UAE Innovates 2024 initiative.

The certification was granted after experts from the certifying body audited the FTA’s system and verified the accuracy of all related procedures. The Authority passed the audits successfully, confirming that its system provides an effective framework for driving innovation.

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FTA Launches Hackathon Event to Encourage Innovators in the Tax Sector

Date: 08 Feb, 2024

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External URL: https://bit.ly/3SCZU1G

Dubai February 08 2024:

As part of its agenda for participating in the month long ‘UAE Innovates 2024’ initiative, held throughout the month of February, the Federal Tax Authority (FTA) has opened the door for participation in its Hackathon event.

With the Hackathon, the Authority aims to develop innovative technological solutions for the challenges the tax sector faces, in addition to strengthening cooperation and partnership among government, educational, and private institutions to achieve a sustainable impact.

The FTA invited innovators to participate in the event, which offers them an opportunity to generate pioneering solutions that address the challenges facing the tax sector in several aspects, including raising awareness about taxes in the community; employing advanced technology to streamline procedures, such as the submission of tax returns for small and medium-sized enterprises (SMEs); and combating tax evasion.

Submissions will continue to be accepted until 23 February, after which the Authority will organise a special event on 29 February at the Dubai Creative Hub – Emirates Towers, in collaboration with world-leading software developers SAP, the FTA’s strategic partner in digital transformation.

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FTA Launches 2nd Phase of Corporate Tax Awareness Campaigns in Abu Dhabi

Date: 06 Feb, 2024

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External URL: https://bit.ly/48hrZS1

Abu Dhabi February 06 2024:

Tax Authority (FTA) has launched the second phase of its comprehensive campaign to raise business sectors’ awareness of Corporate Tax and provide continuous knowledge support to taxpayers. The campaign is part of the FTA’s efforts, in collaboration with the relevant parties, to ensure a seamless implementation of the Corporate Tax Law which entered into effect in June and applies to financial years that began on or after 1 June 2023.

The FTA explained in a press release today that the new phase of the Corporate Tax awareness campaign – which runs until the end of this year – will feature a number of events and virtual as well as in-person workshops across the UAE’s seven emirates. The program will focus on raising awareness about various specific topics such as legislation and the requirements and procedures for Corporate Tax compliance and will be tailored to the needs of each of the concerned taxpayer.

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MPs Approve 2% Tax on Expat Remittances in Bahrain

Date: 02 Feb, 2024

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External URL: https://www.zawya.com/en/world/middle-east/mps-approve-2-tax-on-expat-remittances-in-bahrain-o6eommrt

Manama February 02 2024:

Parliament has unanimously approved a legislation to tax expatriate remittances despite strong opposition from the government.

During its weekly session yesterday, Parliament Speaker Ahmed Al Musallam led the “yes” vote to impose a two per cent levy on the total amount remitted each time by an expatriate individual. It will be now reviewed and voted on by the Shura Council after Mr Al Musallam referred it urgently to the upper chamber.

The government was obliged by law to draft the Parliament-presented legislation within six months. However, it has asserted that a remittance tax would be unfair and ‘unconstitutional’.

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Oman Most Affordable Tax-free Country

Date: 19 Jan, 2024

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External URL: https://www.muscatdaily.com/2024/01/15/oman-most-affordable-tax-free-country/

Muscat January 19 2024:

Oman is the most affordable tax-free country to relocate to in 2024, with a relocation score of 7.92 according to research by award-winning expat insurance provider William Russell. It is also the cheapest country to purchase or rent an apartment in, as it boasts the lowest monthly living costs. It is also the third cheapest country for monthly utility bills, costing around £83 ($103).

Kuwait is the second most affordable tax-free country to move to this year, with a relocation score of 6.49/10. Single economy flights to the country range from US$159 to US$660 and Kuwait is also the second most affordable country for both monthly costs and utility bills.

Bahrain ranks third most affordable tax-free country to relocate to in 2024, earning a relocation score of 6.36/10. Bahrain is the second cheapest country to purchase an apartment in, costing US$173/sqm on average. It is also the fifth most affordable country for both monthly costs and utility bills.

Popular relocation spot – the United Arab Emirates – ranked the fourth most affordable tax-free country (relocation score 5.84/10), with monthly costs of around US$959, while the average monthly net salary in the UAE is around US$3,474.

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Qatar: General Tax Authority Announces Tax Return Filing Dates

Date: 18 Jan, 2024

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External URL: https://www.zawya.com/en/economy/gcc/qatar-general-tax-authority-announces-tax-return-filing-dates-yrhwtxdv

Doha January 18 2024:

The General Tax Authority (GTA) announced the timeframe for the submission of tax returns for the tax year ending on December 31, 2023 and the application window extends from January 1, 2024 to April 30.

The GTA further clarified that all companies with a commercial register or a commercial ‎license must submit a tax return, and this requirement applies irrespective of whether they have ‎engaged in actual commercial activity. Submissions can be made through the Dhareeba tax ‎portal, dhareeba.qa or the Dhareeba Application, the service has been activated for the companies that meet the conditions for submitting a simplified tax return.

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UAE FTA Releases Guide on Tax Groups in Jan 2024

Date: 16 Jan, 2024

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External URL: https://www.zawya.com/en/legal/regulations/uae-corporate-tax-set-up-a-tax-group-to-optimise-your-compliance-cost-vnhmu78q

Abu Dhabi January 16 2024:

This month, the Federal Tax Authority (FTA) released Corporate Tax Guide CTGTGR1 focusing on tax groups. The guide offers detailed explanations on various aspects of tax group and the conditions for establishing a tax group.

The parent company and its subsidiary/ies can request the FTA to form a tax group, if they are resident juridical persons, with the parent company owning at least 95 per cent of the share capital, voting rights, and entitlement to profits and net assets of the subsidiary/ies. Both entities should not be exempt or qualified free zone persons. Additionally, the parent company and its subsidiary must share the same financial year and follow the same accounting standards for preparing their financial statements.

The juridical person condition clarified that the sole establishments, freelancers, and unincorporated partnerships cannot be part of the tax group.

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UAE FTA Recruits 134 Emirati Talents to its Team in 2023

Date: 15 Jan, 2024

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External URL: https://bit.ly/491g5MI

Abu Dhabi January 15 2024:

The Federal Tax Authority (FTA) appointed 134 UAE citizens to its team in 2023, filling various specialised, technical, and administrative positions.

The figure exceeds the FTA’s strategic targets in that regard, where the Authority had aimed to recruit 123 Emiratis in a campaign announced at the beginning of 2023 to raise Emiratisation rates across all sectors of its work.

In a meeting with the Emirati employees appointed in 2023, FTA Director General His Excellency Khalid Ali Al Bustani said: “Over the past few years, the Federal Tax Authority has achieved numerous milestones in developing its human capital, relying particularly on distinguished national talents. The Authority implemented a strategy aimed at training and empowering its team members – and Emirati employees, in particular – by providing diverse job opportunities in tax-related fields and associated sectors.”

“Since its establishment, the Authority has recruited and continuously trained a significant number of qualified UAE citizens,” H.E. added. “We strive to achieve high rates of Emiratisation, which serves to enhance the role that Emirati citizens play across all sectors, including upper management. We will continue to recruit UAE citizens, in line with the FTA’s strategy to upskill our human capital through sustainable organisational development and capacity building.”

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UAE FTA Collaborates with Etihad Credit Bureau to Enhance Tax Compliance

Date: 12 Jan, 2024

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External URL: https://bit.ly/427cf2h

Abu Dhabi January 12 2024:

The Federal Tax Authority (FTA) has signed a membership agreement with Etihad Credit Bureau, the federal entity mandated with regularly collecting credit information from financial and non-financial institutions in the UAE. This agreement is to strengthen bilateral cooperation and benefit from the Bureau’s services and credit information database to enhance tax compliance in the UAE.

The agreement was signed by His Excellency Khalid Ali Al Bustani, Director General of the FTA, and H.E. Marwan Ahmad Lutfi, Director General of Etihad Credit Bureau, at the FTA headquarters in Dubai. It aims to establish an electronic link between the two entities, enabling the Authority to directly access credit reports provided by the Bureau. This will further help strengthen compliance with tax legislation based on authenticated and accurate information and assessments

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MPs Approve 2% Tax on Expat Remittances in Bahrain

Date: 10 Jan, 2024

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External URL: https://bit.ly/47u76T5

Manama January 10 2024:

Parliament has unanimously approved a legislation to tax expatriate remittances despite strong opposition from the government.

During its weekly session yesterday, Parliament Speaker Ahmed Al Musallam led the “yes” vote to impose a two per cent levy on the total amount remitted each time by an expatriate individual.

It will be now reviewed and voted on by the Shura Council after Mr Al Musallam referred it urgently to the upper chamber.

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ZATCA Extends Cancellation of Fines and Exemption of Penalties Initiative for Taxpayers until June 2024

Date: 06 Jan, 2024

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External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1173.aspx

Riyadh January 06 2024:

The “Cancellation of Fines and Exemption of Penalties Initiative” in Saudi Arabia has been extended until June 30, 2024. The initiative covers fines for late registration, late payment, late filing of returns, fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other general regulations.

ZATCA has invited taxpayers to view the details of the initiative through the simplified guideline available on its website, which includes a detailed explanation of the most important aspects of the decision, such as the types of penalties that are included, the conditions for benefiting from the exempt fines and the steps for paying financial dues in installments, as well as introducing the field control violations.

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UAE Corporate Tax: Registration Mandatory for Small Businesses Even with Losses

Date: 03 Jan, 2024

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External URL: https://bit.ly/3NQtajP

Dubai January 03 2024:

FTA declares that it doesn’t mater whether a business is relatively new or has been making losses, they need to register irrespective of whether their annual profit is above or below the Dh 375,000 threshold.

However, if businesses don’t meet the Dh 375,000 profit level, eligible taxable persons (i.e. business owners) can elect for the ‘Small Business Relief’ on their tax return.To be eligible for the relief the criteria is as follows:

  • To be eligible for the relief, the business’s revenue must be below or equal to Dh 3 million for the latest and all previous tax periods.
  • Where the revenue exceeds Dh 3 million, the business will no longer be able to elect for the relief package, even if the revenue falls below the threshold in subsequent tax periods.

But the bottom-line remains the same – these businesses will still need to register for corporate tax.

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Qatar Tax Authority Imposes Penalties worth ₹239 crores on L&T

Date: 02 Jan, 2024

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External URL: https://bit.ly/3TQPXQj

Doha January 02 2024:

General Tax Authority in Qatar has imposed a penalty of ₹111.31 crore for the tax period from April 1, 2016, to March 31, 2017, and an additional ₹127.64 crore for the period from April 1, 2017, to March 31, 2018 on the infrastructure giant Larsen and Toubro (L&T). The two monetary penalties amount to a total tax penalty of ₹239 crore.

According to a regulatory filing by the infrastructure major to the stock exchanges, Qatar Tax Authority has charged the tax penalty over variation in the income declared by L&T against the authority’s assessment.The penalties were levied under article 14 of income tax law number 24 for the year 2018 (in Qatar).

L&T promptly responded by filing an appeal against what it deems an arbitrary and unjustified penalty. The company insists that the penalties were a result of tax assessments and subsequent adjustments in the tax returns for the mentioned periods.

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KSA: ZATCA Issues an Interactive Calendar of Zakat and Tax Returns for the Year 2024

Date: 01 Jan, 2024

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_1177.aspx

Riyadh January 01 2024:

The Zakat, Tax and Customs Authority issues a calendar includes all the dates specified for submitting zakat accounts returns, tax returns for withholding tax, selective goods tax, and value added tax, and more.

In this regard, the Authority added that the calendar is distinguished by its interactive feature, so that it can be added via the calendar of mobile devices and easily browsed. Establishments and those interested can also download the calendar here.

FTA Reveals 13,600 Participants Joined 48 In-person and Virtual Corporate Tax Workshops

Date: 26 Dec, 2023

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External URL: https://bit.ly/48efN5c

Dubai December 26 2023:

The Federal Tax Authority (FTA) confirmed that the first phase of the Corporate Tax awareness campaign launched this year recorded significant participation from taxpayers and various stakeholders involved in its implementation. The campaigns aim to provide continuous knowledge support to all relevant taxpayers and stakeholders and ensure the accurate and seamless implementation of Corporate Tax, in collaboration with relevant entities.

The FTA noted that as part of the campaign, 39 virtual workshops were organised to introduce Corporate Tax and clarify the procedures for its registration in both Arabic and English. Furthermore, the Corporate Tax awareness campaign also included 9 in-person workshops across all 7 Emirates. The workshops concluded with a session on the ‘General Principles on Taxation of Corporations and Businesses’ in December 2023 organised by the Federal Tax Authority.

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FTA Issues Guide Outlining Criteria to Determine Natural Persons Subject to Corporate Tax

Date: 24 Dec, 2023

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External URL: https://bit.ly/4aHxEmH

Dubai December 24 2023:

The Federal Tax Authority (FTA) has issued a new guide outlining the criteria to determine natural persons subject to the Corporate Tax Law, that came into effect on 1 June 2023.

The guide provides a comprehensive and simplified explanation and instructions for natural persons realising income in the UAE, enabling them to determine whether they are subject to Corporate Tax.

The FTA urged all concerned natural persons (individuals) realising income in the UAE, or conducting business – wholly or partly – in the UAE, to refer to the new guide, to familiarise themselves with the Corporate Tax Law, implementing decisions, and other relevant materials available on the FTA’s website.

According to the guide, non-resident natural persons are subject to Corporate Tax in case where they have a permanent establishment in the UAE with a total Turnover of the permanent establishment exceeding AED 1 million within a Gregorian calendar year as from calendar year 2024.