VAT’s UP
VAT’s UP
UAE MoF issues Ministerial Decision on Transitional Rules for Corporate Tax
Date: 26 May, 2023
External URL: http://bit.ly/42epqNj
Dubai May 26, 2023:
The Ministry of Finance has issued Ministerial Decision No (120) of 2023 on Transitional Rules for Corporate Tax.
The decision introduces adjustments for the opening balance sheet under the Corporate Tax Law and provides important clarifications for businesses to transition smoothly before and after the implementation of the Law.
For more details on Tax Legislation click here.
UAE: Public to Rely only on Official Publications issued by MoF and FTA on the Corporate Tax Law
Date: 23 May, 2023
Dubai May 23, 2023:
The Ministry of Finance has called on the public to rely only on official publications and posts issued by MoF and the Federal Tax Authority regarding the Federal Decree Law 47 of 2022 on the Corporate Tax Law and the associated Cabinet and Ministerial Decisions.
As a number of posts circulating on social media and other platforms are being published by independent parties, it may contain inaccurate and unreliable interpretations and analyses of Corporate Tax.
UAE issues Ministerial Cabinet Decision Clarifying who Needs to Pay Corporate Tax
Date: 20 May, 2023
External URL: https://www.arabianbusiness.com/culture-society/uae-announces-major-tax-rule-update-for-residents
Dubai May 20, 2023:
UAE Ministry of Finance issues a new ministerial cabinet decision to clarify who needs to pay Corporate Tax in the country. It outlines rules on who should and should not pay Corporate Tax in the country. The new rules, announced on May, 17 2023 confirms that business owners in the UAE will only be liable to pay Corporate Tax if the turnover from the business activity is more than AED 1 m ($272,000) per year.
UAE’s Ministry of Finance issued Cabinet Decision No. (49) of 2023 on the treatment of resident and non-resident individuals undertaking a business or business activity, for Corporate Tax purposes. The decision clarifies the application of the Corporate Tax regime for individuals and ensure that only business or business-related activity income is taxed. Furthermore, any individual’s personal income notably from employment, real estate and investments will not subject to Corporate tax.
FTA Opens Corporate Tax Registration for Public Joint Stock Companies and Private Companies
Date: 16 May, 2023
External URL: https://bit.ly/453azIe
Dubai May 16, 2023:
The Federal Tax Authority (FTA) has launched registration for Corporate Tax (CT) through the EmaraTax digital tax services platform for Public Joint Stock Companies and Private Companies from 15 May 2023, in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, which stipulates that Taxable Persons will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023. Therefore, Taxable Persons must register and obtain a Tax Registration Number for Corporate Tax purposes.
The FTA invited all Taxable Persons that are Public Joint Stock Companies and Private Companies resident in the UAE for CT purposes to register with the FTA. Kindly note that this will not cover Free Zone Persons for whom CT Registration will be made available at a later stage. Similarly, CT registration for other categories of Taxable Persons, such as natural persons conducting Business or Business Activity as to be specified by a Cabinet Decision, will open at a later date.
The Authority explained that early CT registration will allow ample time for companies and businesses to comply with their legal obligations.
UAE Issues Detailed Guide on Exempt Persons for Corporate Tax
Date: 15 May, 2023
External URL: https://www.khaleejtimes.com/uae/uae-issues-explanatory-guide-including-exemptions-clarifications-for-corporate-tax
Dubai May 15, 2023:
The UAE’s Ministry of Finance has issued an Explanatory Guide for Federal Decree-Law No 47 of 2022 on Taxation of Corporations and Businesses, which provides the legislative basis for imposing a federal tax on corporations’ and business profits effective for financial years starting on or after June 1, 2023. It comprises 20 Chapters and 70 Articles, covering, inter alia, the scope of Corporate Tax, its application and rules pertaining to compliance and the administration of the Corporate Tax regime.
The guide provides an article-by-article explanation of the meaning and intended effect of the provisions of the Corporate Tax Law and its implementing decisions. It may be used in interpreting the Corporate Tax Law and how particular provisions may need to be applied.
Younis Haji Al Khouri, undersecretary of the Ministry of Finance, said: “The Ministry is working to provide clarity and guidance to those who are or may be subject to UAE’s Corporate Tax, so they can understand the provisions of the law and why it is enacted. The Explanatory Guide reflects our continued commitment to ensuring taxable persons are supported and provided with information ahead of the law’s entry into effect.”
The guide includes explanations of the various features of the UAE’s Corporate Tax regime which would encourage business activity and minimize the compliance burden for taxable persons. Further the guide also provides clause by clause clarifications and highlights targeted exemptions for certain entities from corporate taxation, especially those considered important to the social fabric of the UAE. These include government entities, investment funds, pension and social security funds, public benefit organisations and natural resource businesses.
ZATCA Issues Simplified Guide for Deregistering TIN
Date: 12 May, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/Taxpayer-Identification-Number-EN.pdf
Riyadh May 12, 2023:
ZATCA has recently issued a Simplified Guideline for Deregistering TIN in various cases such as mergers, liquidation, acquisition and more.
TIN is a taxpayer identification number obtained by the establishment when it is registered with ZATCA. The manual explains step by step mechanism to submit deregistration requests of TIN on the ZATCA Portal.
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UAE's MOF issues Decision on Transfer Pricing Documentation for CT Purposes
Date: 11 May, 2023
Dubai May 11, 2023:
The Ministry of Finance has issued the Ministerial Decision No (97) of 2023 on the Requirements for Maintaining Transfer Pricing Documentation under the Corporate Tax Law, which aims to promote transparency and fairness in the UAE’s tax system.
Taxpayers with revenues of at least Dh 200 million or part of a multinational group with consolidated revenue of at least Dh 3.15 billion in the relevant period must maintain transfer pricing documentation.
UAE Issues Ministerial Decision on Exempt Persons for Corporate Tax purposes
Date: 10 May, 2023
Dubai May 10, 2023:
The UAE Ministry of Finance has issued Ministerial Decision No. 105 of 2023 on Determination of Conditions under which a Person may Continue or Cease to be Deemed an Exempt Person, which helps to clarify the application of the Corporate Tax Law, ensuring a transparent and efficient tax system that promotes business growth in the UAE.
The Decision clarifies rules to ensure that businesses remain eligible for a Corporate Tax exemption if they fail to meet the relevant exemption conditions under certain circumstances.
These include a business undergoing liquidation or termination provided that a notification has been submitted to the Federal Tax Authority (FTA) within twenty business days from the date of the beginning of the liquidation or termination procedure.
Bahrain Releases Guide for Submitting the Value-added Declaration for the Year 2023
Date: 07 May, 2023
External URL: https://www.nbr.gov.bh/announcements#1
Manama May 07, 2023:
The National Bureau for Revenue (NBR) has released the first edition of the Guide to submitting a Value-added Declaration for the value-added periods for the year 2023. The guide is available on the website.
Click here to view the Guide.
FTA begins Accepting Requests for Refunding Input Tax incurred on Operating Mosques
Date: 06 May, 2023
Dubai May 06, 2023:
The Federal Tax Authority (FTA) has begun accepting refund requests for Value Added Tax (VAT) incurred on operating mosques via its EmaraTax digital tax services platform. This is in line with its Cabinet Decision on the Refund of Input Tax Incurred on the Construction and Operation of Mosques and the Ministerial Decision which has gone into effect and applies to all mosques around the UAE.
Refund requests must be submitted within the set deadlines, in accordance with the date when the mosque in question started being operated by the applicant who submitted said request.
In a press statement, the FTA indicated that with regards to requests to refund VAT collected on building and operating mosques, the Decision specified the period from April to September 2023 where the FTA will receive tax refund requests on the operation of mosques that began operating before 1 January 2022, covering the years 2018 to 2022. Meanwhile, between October and December 2023, the Authority will be receiving tax refund requests on the operation of mosques that began operating on or after 1 January 2022, covering the year 2022.
The Authority went on to explain that all mosques must submit tax refund requests on their operation for any given year after 2022 between January and April of the following year.
Dubai Customs Extends Grace Period to 30 Days for Customs Declaration Submission
Date: 05 May, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/CN4_2023-1.pdf
Dubai May 05, 2023:
On 14 April 2023, Dubai Customs issued Customs Notice No. (04/2023), extending the timeline for physically submitting a hardcopy of the Customs declaration and supporting documents after the import and export clearance. The new grace period and associated details in the notice came into force on 24 April 2023.
Customs declarations and associated documents must be submitted within 30 days after filing the initial Customs declaration online. Supporting documents include any transport documents e.g. bill of lading, airway bill, commercial invoices, packing lists, certificate of origin, exit certificate (exports) and any import/export permits if required. Late filings beyond 30 days will be charged AED 5 per day and up to a maximum of AED 300 for each declaration.
ZATCA Urges Taxpayers to Benefit from the Exemption before May 31
Date: 03 May, 2023
External URL: ZATCA Urges Taxpayers to Benefit from the Exemption before May 31
Riyadh May 03, 2023:
The Zakat, Tax and Customs Authority (ZATCA) urges all taxpayers subject to tax laws to take advantage of the Cancellation of Fines and Exemption of Financial Penalties Initiative that is ending on 31 May 2023.
According to ZATCA, the Initiative exempts taxpayers from fines for late registration in all tax laws, delayed payment, overdue tax return filing in all tax laws, VAT return correction, and field detection of violations of e-invoicing and general provisions of VAT.
The Authority stated that the taxpayer must be registered in the tax law, file all due tax returns with ZATCA and settle the tax liability of all pending tax returns in full to be eligible for the Initiative.
Saudi Arabia Determines Criteria for Fourth Wave of the Integration Phase for Implementing E-Invoicing
Date: 02 May, 2023
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1039.aspx
Riyadh May 02, 2023:
The Saudi Zakat, Tax, and Customs Authority (ZATCA) announced on 28 April 2023 that it has determined the criteria for the fourth wave of the integration phase for the country’s new E-Invoicing (FATOORA) requirements. The Authority clarified that the fourth wave included all taxpayers whose revenues subject to VAT exceeded SAR 150 Million during 2021 or 2022. VAT-registered taxpayers meeting the criteria should integrate their e-invoicing solutions with the FATOORA Platform starting from November 1, 2023.
It is worth reminding you that the first wave of the integration phase began on 1 January 2023 for taxpayers with VAT taxable revenue that exceeded SAR 3 billion in 2021, and it has been decided that the second wave will begin on 1 July 2023 for taxpayers with VAT taxable revenue that exceeded SAR 500 million in 2021 and the third wave will begin on 1 October 2023 for taxpayers with VAT taxable revenue that exceeded SAR 250 million in 2021 or 2022.
UAE Corporate Tax: FTA to Launch Specialised Tax Agent Scheme
Date: 01 May, 2023
External URL: https://www.khaleejtimes.com/business/corporate/uae-corporate-tax-board-reviews-plans-to-implement-scheme
Dubai May 01, 2023:
The Federal Tax Authority (FTA) will launch four transformative projects aimed at enhancing the UAE’s competitiveness and realising its vision for the future.
The Specialised Tax Agent scheme aims to develop and facilitate the process of selecting the appropriate tax agent for taxpayers in the UAE. According to the FTA website, this is done by creating a database to classify the tax agents registered within specific fields such as contracting, medical, financial, transportation, and other sectors.
This came as Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, chaired the second meeting of the FTA Board of Directors for 2023.
UAE Corporate Tax: Ministry Issues Decision Specifying Requirement For Firms Earning Over Dh 50 Million
Date: 30 Apr, 2023
Dubai April 30, 2023:
The UAE’s Ministry of Finance has issued two decisions that seek to bring transparency and clarity to the country’s corporate tax regime — which will come into effect from June 1, 2023.
Ministerial Decision No. 82 of 2023 specifies that taxable entities— including qualifying free zone companies — that derive revenues of over Dh 50 million are required to prepare and maintain audited financial statements.
In another decision (No. 83 of 2023), the ministry clarified the situations where the presence of natural persons in the UAE could/could not give rise to a permanent establishment for the non-resident person (foreign company), including if their presence is due to unforeseen temporary exceptional circumstances and where they have no intention of staying in the UAE once these circumstances cease
The decision further specifies what constitutes a temporary and exceptional presence in the UAE. It aims to provide clarity and prevent tax avoidance and double non-taxation in alignment with global best practices.
KSA: ZATCA Determines the Criteria for Selecting the Taxpayers in Wave 4 Implementing Phase of E-invoicing
Date: 28 Apr, 2023
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1039.aspx
Riyadh April 28, 2023:
Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the fourth wave for implementing the Integration Phase of E-invoicing. It clarified that the 4th wave included all taxpayers whose revenues subject to VAT exceeded 150 Million Saudi Riyals during 2021 or 2022. VAT-registered taxpayers meeting the criteria should integrate their e-invoicing solutions with the FATOORA Platform starting from November 1, 2023.
Note: Taxpayers within this group are expected to integrate as of November 2023.
ZATCA has stated that Phase Two i.e Integration Phase requires additional requirements, the most prominent of which are to integrate taxpayers’ e-invoicing solutions with ZATCA’s platform FATOORA, issue e-invoices based on a specific format and include additional fields in the invoice.
Furthermore, the Integration Phase of E-invoicing would take place gradually in waves and ZATCA would inform the following waves directly at least six months before their Integration Date.
FTA Accepts Requests for Refunding Input Tax incurred on Operating Mosques
Date: 27 Apr, 2023
External URL: https://bit.ly/3VlD0N5
Abu Dhabi April 27, 2023:
The Federal Tax Authority (FTA) has begun accepting refund requests for Value Added Tax (VAT) incurred on operating mosques via its EmaraTax digital tax services platform, in line with the Cabinet Decision on Refund of Input Tax Incurred on the Construction and Operation of Mosques and the Ministerial Decision in that regard, which has gone into effect and applies to all mosques around the UAE.
Refund requests must be submitted within the set deadlines, in accordance with the date when the mosque in question started being operated by the applicant who submitted said request.
In a press statement, the FTA indicated that with regards to requests to refund VAT collected on building and operating mosques, the Decision specified the period from April to September 2023 where the FTA will receive tax refund requests on the operation of mosques that began operating before 1 January 2022, covering the years 2018 to 2022. Meanwhile, between October and December 2023, the Authority will be receiving tax refund requests on the operation of mosques that began operating on or after 1 January 2022, covering the year 2022.
The Authority went on to explain that all mosques must submit tax refund requests on their operation for any given year after 2022 between January and April of the following year.
UAE announces Corporate Tax Exemption for Public Welfare Entities
Date: 25 Apr, 2023
External URL: https://www.khaleejtimes.com/business/uae-announces-corporate-tax-exemption-for-public-and-community-welfare-entities
Dubai April 25, 2023:
The Ministry of Finance (MoF) has announced that entities contributing to public and community welfare are exempt from Corporate Tax (CT), which is set to come into effect this year. The exemption is designed to reflect the significant role played by these entities in the UAE, which often includes organisations with a focus on areas of religion, charity, science, education and culture.
A statement issued by the Ministry said companies involved and focused on public welfare, philanthropy, community services or CSR will be exempt from corporate tax. These entities must continue to comply with all pertinent local, state and federal laws and notify the MoF of any changes that may affect their status as qualifying public benefit entities in order to be eligible for UAE corporate tax exemption. These entities must also meet the requirements under Article 9 of the corporate tax law.
The qualifying public entities must also register with the FTA and obtain a tax registration number for CT purposes. On the Finance Minister’s recommendation, the Cabinet may change, add, or remove entities from the list of qualifying entities.
Earlier, the Ministry has also announced corporate tax exemptions for non-resident persons, government entities, government-controlled entities, as well as extractive businesses and non-extractive natural resource businesses.
Qatar: No Plan to Impose Income Tax or VAT
Date: 22 Apr, 2023
External URL: https://www.gulf-times.com/article/659357/qatar/no-plan-to-impose-income-tax-vat-date-not-yet-decided-says-pm
Doha April 22, 2023:
HE Sheikh Mohamed bin Abdulrahman bin Jassim al-Thani, the Prime Minister and Minister of Foreign Affairs said ‘There are no discussions about imposing income tax in Qatar and the date for implementing the value-added tax (VAT) is yet to be studied.’
Speaking to Qatar TV in a live interview, his first after taking charge as the Prime Minister, HE Sheikh Mohamed pointed out that the FIFA World Cup Qatar 2022 was the starting point for the country’s great plans and ambition to open up the economy and tourism.
ZATCA Encourages Individuals to Pay Zakat via Zakaty
Date: 10 Apr, 2023
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_1029.aspx
Riyadh April 10, 2023:
Zakat, Tax and Customs Authority (ZATCA) encouraged individuals to pay their Zakat voluntarily via Zakaty App from their smartphones or via their service website (zakaty.gov.sa).
This online service provides the ability to calculate the payable Zakat of various types. This Zakat includes funds, gold, silver, stocks, investment funds and lands along with an invoice for the transaction. In addition, it serves the function of reminding about the Zakat due date. Also as the App is connected to Global gold and silver rates it helps in calculating gold Zakat as per its purity through a specific algorithm.
ZATCA clarified that zakat amounts provided by Zakaty exceeded SAR 431 million as of now since the service was launched 6 years ago. ZATCA confirmed that all amounts provided through Zakaty were used by the beneficiaries who are registered in the Social Insurance at the Ministry of Human Resources and Social Development. The Zakat is directed to the selected categories through the App.
ZATCA Sets UP an Advisory Committee to offer Proposals and Recommendations
Date: 09 Apr, 2023
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1026.aspx
Riyadh April 09, 2023:
The Zakat, Tax, and Customs Authority (ZATCA) made the decision to establish an advisory committee to provide consultations in the areas of zakat and tax as well as activities related to customs work and logistical services. The committee will also be responsible for discussing and reviewing recommendations and submitting proposals.
The committee is comprised of a select group of part-time, qualified, and experienced individuals from the private sector, whose memberships are for three years.
It is worth mentioning that the Authority hopes the creation of the Advisory Committee will strengthen communication with its taxpayers and customers by identifying areas for growth and improvement.
UAE Announces Corporate Tax Relief for Small Businesses and Startups
Date: 06 Apr, 2023
External URL: https://www.khaleejtimes.com/business/uae-announces-corporate-tax-relief-for-small-businesses-startups
Dubai April 06, 2023:
The UAE’s Ministry of Finance on April 6, 2023 announced relief for small and micro businesses, startups and freelancers under the corporate tax, which will come into effect from June 1, 2023.
The Ministerial Decision No. 73 of 2023 specifies that businesses and individuals with revenues of Dh 3 million or less can benefit from Small Business Relief initiative as it intends to support start-ups and other small businesses by reducing their corporate tax burden and compliance costs.
The UAE government last year announced that it would levy a nine percent tax on the profits of companies exceeding Dh 375,000. The Ministry said the Dh 3 million revenue threshold will apply to tax periods starting on or after June 1, 2023 and will only continue to apply to subsequent tax periods that end before or on December 31, 2026.
View the Ministerial Decision No. 73 of 2023 “Small Business Relief for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses”
Bahrain: NBR Conducts more than 490 Inspection Visits in Early 2023.
Date: 05 Apr, 2023
External URL: https://www.nbr.gov.bh/releases/155
Manama April 05, 2023:
As part of its continuous monitoring efforts to protect the rights of consumers and enhance the level of compliance of commercial establishments; The National Bureau of Revenue carried out 495 inspection visits to local markets in various governorates of the Kingdom of Bahrain during the months of January and February of 2023.
These campaigns were carried out of the Agency’s constant keenness to enhance oversight of local markets in order to verify the compliance of commercial establishments with respect to the proper application of value-added taxes, and also the application of the digital stamp system on cigarette products.
The campaigns were also directed to ensure the awareness of stores on the mechanism of applying the digital stamp system and the mandatory presence of these stamps on all cigarette products traded in the local markets.
FTA Launches Muwafaq Package Initiative to Facilitate Doing Business among SMEs
Date: 03 Apr, 2023
External URL: https://bit.ly/42Xdcu9
Dubai April 03, 2023:
The Federal Tax Authority (FTA) has launched the Muwafaq Package initiative to facilitate doing business and tax compliance in the small and medium-sized enterprises (SMEs) sector offering them customised services, incentives and privileges.
The Authority announced that the initiative forms part of the FTA’s strategy to support the Government Accelerators Project, launched by the UAE government as part of its efforts to embody the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai. It aims to apply the new approach to government work and implement major and rapid transformational projects that focus on building the world’s most dynamic economy, spearheading major transformations across various areas of work in the economy.
The Authority announced that the Muwafaq Package could be accessed by SMEs registered in the tax system in the UAE through the digital tax services platform EmaraTax. It also stated the Muwafaq Package offers innovative tax solutions for SMEs registered in the tax system, as well as educational materials about tax systems. The Package was tailored to SMEs and designed to empower the people behind these projects to be a driving force for the national economy and promote entrepreneurship and innovation.
FTA Launches its Digital Innovation Platform ‘Tax 10’
Date: 01 Apr, 2023
External URL: https://bit.ly/3U7tyfY
Dubai April 01, 2023:
Federal Tax Authority launches its digital innovation platform ‘Tax 10’. The platform is designed to strengthen and encourage innovation, excellence, and professional creativity among its employees, as well as to upgrade its services, drive sustainable development, enhance corporate and individual performance, and promote a culture of innovation.
The Authority stated that the new platform was built to incorporate the latest technologies and smart programmes used in the field, in an effort to create a framework that encourages the active participation of all FTA employees in designing and developing future tax initiatives, or projects in other areas related to the Authority’s operational and service systems.
The platform includes a rich digital obserVATory featuring more than 3,000 international government innovation practices, documented and classified into 15 different categories, including tax and financial innovations, government services, and future skills.
FTA's Public Clarification EXTP010 replaces Public Clarification EXP005, effective from 1 April 2023.
Date: 31 Mar, 2023
External URL: https://www.allaboutvat.com/wp-content/uploads/2023-03-13-EXTP010-1.pdf
Dubai March 31, 2023:
New Public Clarification EXTP010 replaces Public Clarification EXP005, effective from 1 April 2023.
View more details in the post by FTA.
The highlights of the new clarification are :
FTA Issues Notification for Non-Registered VAT Persons
Date: 27 Mar, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/Tax-alert.jpg
Dubai March 27, 2023:
Tax Alert:
The Federal Tax Authority (FTA) has started issuing notifications to individuals or businesses who have reached the mandatory registration threshold of AED 375,000 and are still not registered for VAT.
It is important to note that individuals dealing with commercial properties in the UAE to understand the mandatory VAT registration threshold and register themselves before selling or buying commercial properties. VAT registration is a legal obligation for businesses that exceed the threshold and failure to register can result in penalties and fines.
If you receive a notification from the FTA regarding mandatory VAT registration, it is crucial to register within the given time frame of 10 days and share your VAT Tax Registration Number (TRN) to the designated email – nonregistered@tax.gov.ae. In case you have received this notice and you do not reach the mandatory threshold or do not meet the VAT registration requirements, you should provide proof documents to the designated email.
All individuals or businesses who have not registered for VAT must take this matter seriously and act immediately to comply with tax regulations. Failure to do so can have serious consequences.
ZATCA Determines the Criteria for Selecting Taxpayers in E-Invoicing Wave 3
Date: 24 Mar, 2023
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1023.aspx
Riyadh March 24, 2023:
Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the third wave for implementing the “Integration Phase” of E-invoicing, as it clarified that the third wave included all taxpayers whose revenues subject to VAT exceeded (250 Million Saudi Riyals) during 2021 or 2022.
VAT-registered taxpayers meeting the criteria should integrate their e-invoicing solutions with (FATOORA) Platform starting from October 1, 2023.
FTA Releases a Guideline on Input Tax Apportionment
Date: 21 Mar, 2023
External URL: Federal Tax Authority release a guideline on Input Tax Apportionment
Dubai March 21, 2023:
On 20 March 2023, the Federal Tax Authority release a guideline on Input Tax Apportionment (VATGIT1) to provide in understanding the input tax apportionment and special methods for input tax apportionment when applying the VAT legislation.
This document describes the rules and methods for input VAT recovery when both VAT taxable and VAT exempt activities are performed.
In addition, VATG1 will replace the previously released Input Tax Apportionment: Special Methods VAT Guide.
Bahrain: NBR Announces Mandatory Digital Stamps for Waterpipe Tobacco Products
Date: 19 Mar, 2023
External URL: https://www.bizbahrain.com/no-imported-waterpipe-tobacco-molasses-products-without-digital-stamps-allowed-in-bahrain/
Dubai March 19, 2023:
The National Bureau for Revenue (NBR) in cooperation with De La Rue announced the successful completion of the first implementation milestone of the Digital Stamps Scheme on waterpipe tobacco “molasses” products. This scheme aims to track excise goods from the manufacturing stage to the consumption point through digital stamps, which will protect against the circulation of counterfeit or illegal products.
The National Bureau for Revenue (NBR) announced that starting from 19 March 2023, the import of waterpipe tobacco products without a digital stamp will be prohibited through the customs points of entry in Bahrain.
UAE FTA Introduces New E-commerce Related VAT Obligations
Date: 17 Mar, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/Executive-Regulation-of-Federal-Decree-Law-No-8-of-2017-Publish-17112022.pdf
Dubai March 17, 2023:
The Federal Tax Authority (FTA) has introduced new e-commerce reporting and record-keeping obligations for resident taxpayers. These obligations, published in an amendment to the UAE VAT Executive Regulation, change the sourcing rules for e-commerce supplies made by residents in the Emirates. Amendments to the voluntary disclosure procedure have also been enacted.
Timeline
The new reporting and record-keeping obligations are applicable from July 1, 2023, or the first tax period following the calendar year in which the threshold was exceeded.
- Taxpayers that meet the threshold should be subject to the e-commerce reporting obligation for a set time period.
- For taxpayers that have exceeded the threshold during year 2022: 18 months from the first tax period on or after July 1, 2023.
- For taxpayers that have exceeded the threshold after calendar year 2022: two years from the first tax period of the calendar year following the year the taxpayer has exceeded the threshold.
- After this time period, whether it be 18 months or two years, the taxpayer should re-assess whether it has met the threshold in the calendar year that has just ended.
The voluntary disclosure rules will be applicable from March 1, 2023.
View the document to know more about the amendments’ impact and obligations for taxpayers.
UAE and Turkey sign Trade Agreement
Date: 15 Mar, 2023
External URL: https://www.thenationalnews.com/business/economy/2023/03/03/uae-and-turkey-sign-comprehensive-economic-partnership-agreement/
Dubai March 15, 2023:
The United Arab Emirates and Turkey signed a comprehensive economic partnership agreement (CEPA) in Abu Dhabi. The aim of the deal is to increase trade between the two countries to $40 billion in the next five years and create thousands of new jobs.
Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in Abu Dhabi that the agreement was a milestone for the region.’It promises to write a new chapter in the UAE-Turkey bilateral relations, transforming long-standing friendship into a dynamic partnership for growth’ he said. ‘The agreement, which is expected to come into effect from the middle of this year, will create 25,000 highly skilled jobs in the UAE and 100,000 jobs in the Turkish market in the next 10 years’, Dr Al Zeyoudi told.
Speaking in Istanbul Turkish President Tayyip Erdogan said ‘The Comprehensive Economic Partnership Agreement (CEPA) will certainly take economic and trade relations between the two countries to a new phase’.
FTA Issues Excise Tax Public Clarification EXTP010 on Registration of Warehouse Keeper
Date: 13 Mar, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/2023-03-13-EXTP010-1.pdf
Dubai March 13, 2023:
The Federal Tax Authority (FTA) of UAE has issued the Excise Tax Public Clarification EXTP010 on ‘ Registration of Warehouse Keeper and Registration and Renewal of Registration of Designated Zones’. This new issue replaces EXTP005 effective from 1st April 2023.
Every designated zone in the UAE is required to have an appointed warehouse keeper who is responsible for overseeing the operation of the designated zone and ensuring that the conditions and security requirements imposed over the designated zone continue to be met. A warehouse keeper must apply to the FTA to be authorised to oversee a designated zone.
This Public Clarification provides more details on these conditions and criteria to register as a warehouse keeper and to register or renew the registration of a designated zone, effective from 1 April 2023.
Dubai Custom Reinstates Previous Import Value threshold of AED 1,000 for Shipments
Date: 07 Mar, 2023
External URL: https://www.khaleejtimes.com/life-and-living/dubai-suspends-new-customs-duty-on-international-goods-above-dh300
Dubai March 7, 2023:
The new customs duty, which was to be levied on goods bought internationally with a value of more than AED 300 will no longer apply in Dubai as of March 1, 2023. This is according to an email sent by Dubai Customs, which also announced that as of March 1, 2023 the previous threshold of AED 1,000 for the exemption of parcels and shipments has been reinstated.
In January this year, Dubai introduced new customs duty on goods bought internationally with a value of more than AED 300, which earlier only applied to goods exceeding AED 1,000.
The email said, “Kindly be informed that Paragraph (a) of Article (2) of Customs Notice 5/2022 related to exemption of consignments with value not exceeding AED 300 has been suspended and that it has been decided to re-establish the previous threshold for exemption of parcels/shipments of AED 1,000 effective March 1, 2023, until further notice.”
OTA Launches App to Combat Counterfeit Goods
Date: 05 Mar, 2023
External URL: https://www.muscatdaily.com/2023/02/28/tax-authority-launches-new-app-to-combat-counterfeit-goods-in-oman/
Muscat March 5, 2023:
The Oman Tax Authority (OTA) has launched an app called ‘Ta’akad’ to protect consumers from counterfeit goods and verify the validity of tax stamps on products.The app is available on both Android and IOS devices and allows consumers to report any commodity which violates the law.
An official at Tax Authority said, ‘The app aims to prevent the spread of counterfeit goods in the local markets and ensures the validity of the tax stamp on the products and protects the consumer.’ He added, ‘The consumer can now report any commodity that violates the law through the application.’
The Tax Authority is also working with the Royal Oman Police and the Consumer Protection Authority to prevent the entry of cigarettes and tobacco products without the distinctive tax stamp into the country.
NBR to Prevent the Import of Hookah Tobacco Products without Digital Stamps
Date: 04 Mar, 2023
External URL: https://www.nbr.gov.bh/releases/153
Manama March 4, 2023:
The National Bureau of Revenue (NBR), in cooperation with De La Rue International Ltd., successfully completed the first phase of applying the distinctive mark system (digital stamps) on hookah tobacco products (Moassel). Under this control system, digital stamps containing security codes are placed on the excise goods to track them from the manufacturing stage to the point of consumption, which helps reduce illegal trade and prevent the circulation of counterfeit products.
The NBR indicated that registration in the digital stamp system is concerned with selective importers of hookah tobacco products (Moassal), manufacturers and related institutions in the supply chain starting from production and import until offering products in the local markets in the Kingdom of Bahrain.
The agency stressed the importance of the first phase of implementing the system which began on November 20, 2022, and is concerned with receiving requests to purchase digital stamps by those subject to selectivity registered with the agency, through the electronic system designated for that, while allowing the trading of products that do not contain digital stamps in the markets.
The importance of complying with this stage is to ensure the readiness of importers before March 19, 2023 for the second stage, in which importers must ensure that all products arriving at the ports of the Kingdom of Bahrain for customs clearance bear digital stamps.
The last stage is the application stage within local markets, where it is prohibited at this stage to possess, trade, sell or supply any hookah tobacco products that do not contain digital stamps from June 18, 2023.
Federal Tax Authority Teams Up with SAP to Advance Digital Transformation Efforts
Date: 03 Mar, 2023
External URL: http://wam.ae/en/details/1395303134409
Dubai March 03, 2023:
FTA has signed an MoU with global technology company SAP, which specialises in enterprise software solutions and cloud computing, to collaborate towards advancing the FTA’s standing in the international tax sector.
The agreement also underlines FTA’s role in driving sustainable financial diversification, leading digital transformation efforts, and efficiently implementing innovation and smart technology plans.
The MoU was signed by His Excellency Khalid Ali Al Bustani, Director General of the FTA, and Zakaria Haltout, Managing Director of SAP UAE.
ZATCA Authorities Carry Out more than 10,000 Inspection Visits
Date: 27 Feb, 2023
External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_1010.aspx
Riyadh February 17, 2023:
The Zakat, Tax and Customs Authority (ZATCA) carried out more than 10,000 inspection visits during the month of January, on markets and shops in various cities of the Kingdom. The Authority stated that the visits carried out by its supervisory and inspection teams, in cooperation with the National Program for Combating Commercial Concealment, included a number of commercial sectors, most notably retail, the food sector and professional services. The inspection visits aimed to enhance compliance with the provisions of the tax regulations in force in the Kingdom.
The Authority iterated that its inspection visits to markets and shops come in the context of its oversight efforts, which it implements through field inspection teams, aim at enhancing the degree of tax compliance among taxpayers from the business sector and limiting commercial transactions that violate the instructions and controls that fall within the jurisdiction of the Authority.
FTA issues VAT Public Clarification P033 – Amendments to Emirates’ Reporting – Electronic Commerce Supplies
Date: 26 Feb, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/VATP033-Amendments-to-Emirates-Reporting-23-02-2023-1.pdf
Dubai February 26, 2023:
Following the Ministerial Decisions on which the Criteria and Conditions for Electronic Commerce for Record Keeping of the Supplies Made, the Federal Tax Authority (FTA) has issued a Public Clarification VATP033 guide of the approved amendments for the Emirate Reporting.
VAT Public Clarification P033 – Amendments to Emirates’ Reporting – Electronic Commerce Supplies by Qualifying Registrants covers reporting guidelines for taxable e-commerce registrants on the reporting of standard rates supply. In addition, taxable e-commerce registrants are required to track and keep records of supplies made from and to each emirate.
View the VAT Public Clarification P033 for more details.
MoF issues a Ministerial Decision on the Criteria and Conditions for Electronic Commerce for Record Keeping of Supplies Made
Date: 25 Feb, 2023
Dubai February 25, 2023:
The Ministry of Finance (MoF) issued a Ministerial Decision on the Criteria and Conditions for Electronic Commerce for Record Keeping of the Supplies Made.
The decision came following the issuance of Cabinet Decision No. 99 of 2022 on the amendment of some provisions of Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on VAT, which has amended Article 72 of the Executive Regulation and introduced for some taxable persons (whose value of e-commerce supplies of goods and services exceeds AED 100 million) the requirement to keep records of e-commerce transactions according to the emirate in which these supplies are received.
As per the decision, a supply of goods and services shall be considered to be an electronic commerce supply made via an electronic commerce medium where all the following criteria and conditions are met:
- The goods and services are listed or advertised on an electronic commerce medium;
- The goods and services are ordered through the electronic commerce medium, regardless of whether the payment is made online or not;
- In the case of a supply of goods, the goods are delivered to a location specified by the customer whereby this location is not owned by the supplier nor operated by that supplier.
- In the case of a supply of services, the services are provided, or the right to receive the services is granted to the customer with minimal or no human intervention.
The decision defines an electronic commerce medium as “A website, portal, gateway, interface, platform, marketplace, programme interface (API), or similar application which facilitates the sale of Goods or Services, including electronic means, electronic platform, a store in social media and electronic applications or similar applications.”
Qatar may Introduce 5% VAT in Summer 2023
Date: 22 Feb, 2023
External URL: https://www.vatcalc.com/qatar/qatar-bides-its-time-on-vat-implementation/
Doha February 22, 2023:
Qatar’s VAT regime can be expected during 2023. The country is said to be progressing with plans to introduce a 5 percent VAT regime in the Summer and it is anticipated that its authorities may soon announce a value-added tax (VAT) law and executive regulation in the months to come.
VAT would affect most sales of goods and services in Qatar, with limited exemptions (e.g. financial services, insurance) and consumption tax relief. VAT-registered businesses will be able to claim credit for VAT paid on their expenditure, relating to their taxable business activities.
UAE PASS Digital Signature feature Introduced to EmaraTax
Date: 20 Feb, 2023
External URL: https://tax.gov.ae/en/media.centre/news/uae.pass.digital.signature.feature.introduced.to.emaratax.aspx
Dubai February 20, 2023:
The Federal Tax Authority (FTA) introduces single sign-on UAE PASS feature – the first national digital identity – to the EmaraTax platform which tax system registrants can use in all procedures and services on the platform, available through the official FTA website. This feature further advances the sweeping digital transformation taking place across the UAE.
The Authority stated that the new feature was launched in collaboration with relevant authorities and is designed to meet the highest standards of security, confidentiality and accuracy of information and procedures in an effort to speed up processes, improve user experience and meet customers’ aspirations.
Mr Abdulla Al Bastaki, Executive Director of the Information Technology Sector at the Federal Tax Authority, called on all FTA customers to take advantage of the new feature and activate their UAE PASS accounts and then use them to access the Authority’s services quickly and easily from the convenience of their devices.
Qatar : GTA announces Detection of Tax Evasion Cases
Date: 17 Feb, 2023
External URL: https://www.iloveqatar.net/news/general/qr-500000-fine-penalties-legal-action-companies-tax-evasion-doha
Doha February 17, 2023:
General Tax Authority’s (GTA) Revenue Protection Team have identified tax evasion cases in the region by a group of individuals and companies. The GTA’s investigations revealed that two companies operating in the contracting sector had committed acts that constitute tax evasion crimes. The GTA has taken the necessary measures by referring these companies to Public Prosecution for legal action and to recover the evaded amounts, a total of QR 24 million, in addition to the penalties and fines stipulated by applicable laws.
The competent court has issued convictions against both the companies and their authorized signatory partner. GTA referred that tax evasion is a serious impediment to tax systems worldwide, adding that such criminal practices harm the national economy and compromise equality and fair opportunities among taxpayers while eroding the competitive advantage of compliant companies. Moreover, the GTA reiterated its commitment to combat tax evasion and take legal action against anyone guilty of such crimes.
The GTA is taking proactive measures across all its departments to foster voluntary tax compliance and enhance community confidence in the tax system. These ongoing efforts aim to minimize tax evasion and create an environment of greater tax compliance. Finally, GTA urges all taxpayers to strictly comply with the provisions and procedures outlined in the tax laws to avoid any potential legal consequences.
ZATCA issues Circular on ‘VAT Treatment of Certain Supplies in the Financial Services Industry’
Date: 10 Feb, 2023
External URL: https://bit.ly/3Y629LJ
Riyadh February 10, 2023:
The ZATCA of KSA has issued Tax Circular on ‘VAT Treatment of Certain Supplies in the Financial Services Industry’.
The circular aims to provide guidance on the application of VAT rules in respect of two types of transactions involving banks and financial institutions in the KSA which are Supplies of services by International banks established in KSA to non-resident customers; and Incentives provided by credit card companies to banks in return for achieving operational targets.
Oman: The Obligation Phase of Digital Tax Stamps has begun with Inspections
Date: 05 Feb, 2023
External URL: https://bit.ly/3Z3ffur
Muscat February 5, 2023:
Oman Tax Authority (OTA) has commenced the phase of mandatory local obligation with respective to its decision of Tax Stamp implementation in the Sultanate of Oman. Inspectors of the Tax Authority have conducted inspections in many local markets since the first of February to ensure that the Digital Tax Stamp (DTS) is being put on the products of excise goods.
The system of Tax Stamps aims to protect the consumer from counterfeit excise goods. The tax stamps are scanned at the entry points to the Sultanate of Oman to ensure that the products are original and intact, and to reduce the incidence of smuggling these products to the Sultanate. This move thereby reduces the possibility of evasion from Excise Tax while ensuring timely and effective tax collection and meeting compliance standards under the WHO (FCTC).
FTA Launches ‘Tax Support’ Initiative for 2023
Date: 31 Jan, 2023
External URL: https://www.gulftoday.ae/business/2023/01/29/fta-launches-first-event-under--tax-support-initiative-for-2023
Dubai January 31, 2023:
The Federal Tax Authority (FTA) has launched the ‘Tax Support’ initiative to raise tax awareness among business sectors in the UAE. The initiative aims to achieve awareness through direct and sustained contract, as a means to enhance compliance with tax laws and regulations.
The first workshop under the initiative was held on January 24th and 25th as a collaboration between the FTA and On Time Business Solutions Centre, which is located in Oud Metha, Dubai.
The Authority stated that the activities of the ‘Tax Support’ initiative will continue throughout the year and cover all seven emirates, in collaboration with relevant centres and entities in the government and private sectors, where experts from the FTA will go on several tours in accordance with a comprehensive timeline.
The initiative targets taxpayers and aims to facilitate the process of paying taxes for them, in an effort to raise the rate of tax compliance and awareness around the UAE, in addition to responding to taxpayer enquiries and observations, directing them to the available tax guidelines, and correct procedures.
FTA Invites Select Businesses to Start their CT Registrations
Date: 30 Jan, 2023
Dubai January 30, 2023:
Big businesses and public companies get their first shot at registering for Corporate Tax (CT) via EmaraTax. A staggered approach for CT registering gives mid- and small businesses more time to be ready and get their processes in order. At the same time, it gives the tax authorities to fine-tune all of the related processes before the implementation date for the Corporate Tax from June 2023.
Currently, the ‘big corporates and public joint stock companies (PJSC) have been invited to do their CT registrations through the EmaraTax platform. The early registration period will continue until May. Registration is open for certain categories – i.e. a ‘Legal Person’, which includes PJSCs and UAE private companies.
Are you ready for UAE corporate tax 2023? Chat with our tax experts now.
KSA: Voluntary Participation in Phase 2 of E-invoicing
Date: 26 Jan, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/E-Invoicing_Detailed__Guideline.pdf
Riyadh January 26, 2023:
The Saudi Arabian Tax and Customs Authority ZATCA, has recently changed its approach to voluntary participation in Phase 2 of E-invoicing in the Kingdom.
Previously it has not been allowed to voluntarily start the implementation of Phase 2, however, with the update of the guideline published in December 2022, taxpayers now have the option to start following Phase 2 requirements on a voluntary basis before their integration enforcement date.
View the guideline.
FTA Releases User Manual on Login to EmaraTax using UAE PASS
Date: 25 Jan, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/2023-01-25-Login-to-EmaraTax-using-UAE-PASS.pdf
Dubai January 25, 2023:
The UAE Federal Tax Authority (FTA) released a User Manual on Login to EmaraTax using UAE PASS. This manual helps taxpayers navigate through the application and depicts the steps in an easy-to-understand manner.
Here is the manual for anyone interested in knowing more about the login procedures.
FTA opens Pre-registration for Corporate Tax through EmaraTax Platform
Date: 22 Jan, 2023
External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.opens.pre.registration.aspx
Dubai January 22, 2023:
The Federal Tax Authority (FTA) has launched early registration for corporate tax through the EmaraTax platform for digital tax services, in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, which stipulates that Taxable Persons will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.
The Authority explained that the early registration period is available from January 2023 to May 2023 for certain categories of companies operating in the UAE. These selected companies will be receiving invitations from the FTA by email and SMS, allowing them to register via the EmaraTax platform.
Following this phase, the FTA will announce at a later date when registration will be open for other companies and businesses. The FTA will make sure to give ample time for companies and businesses to apply for registration and meet their legal obligations. When registration opens, priority will be given to companies and businesses that have a financial year starting on 1 June 2023.
The Authority welcomes any feedback and suggestions during this phase to ensure continuous improvements of registration procedures and processes.
New UAE Rule- Mandatory Attestation required for Import Invoices more than Dh 10000
Date: 18 Jan, 2023
Dubai January 18, 2023:
Companies in the UAE will soon be required to attest import invoices with a value of Dh 10,000 and above, according to the UAE Ministry of Foreign Affairs and International Cooperation. The attestation cost of Dh 150 per commercial invoice will be applicable, and customers will have a grace period of 14 days after the declaration of goods to comply with the attestation. Failure to do so will result in a penalty of Dh 500 per invoice levied by the UAE Ministry of Foreign Affairs and International Cooperation (Mofaic) on the non-complying businesses.
According to a tweet issued by Mofaic — as per Cabinet Resolution No. 38 of 2022 regarding fees for certification of invoices and certificates of origin for imports into the UAE — this new rule will come into effect on February 1, 2023. This new regulation will apply to all goods imported into the UAE with a value of Dh 10,000 and above and the attestation of Invoices will be done electronically.
Contact our tax experts for more details.
ZATCA confirms Liquor will not be Sold at Duty-free Shops in KSA
Date: 16 Jan, 2023
External URL: https://saudigazette.com.sa/article/628664
Riyadh January 16, 2023:
Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) has confirmed that liquor will not be sold at the newly established duty-free markets in the Kingdom’s entry ports.
According to the rules for establishing duty-free markets, only goods and products that are permitted to be traded in the Kingdom will be allowed at the duty-free markets, ZATCA said.
The authority has set the customs rules, requirements and procedures for establishing duty-free markets at air, sea and land ports, in accordance with the unified customs law for the GCC countries, which includes the conditions related to the operation of duty-free markets. The authority stressed that the decision will contribute to supporting supply chains and improving logistical services provided to duty-free markets by providing a wide range of goods and products for travel shopping.
ZATCA Issues Tax Circular on VAT Treatment of Certain Supplies in the Financial Services Industry
Date: 15 Jan, 2023
External URL: http://www.allaboutvat.com/wp-content/uploads/2023-01-09-Fin-serv.pdf
Riyadh January 15, 2023:
The Zakat, Tax and Customs Authority (ZATCA) has issued a new circular to clarify the VAT laws and provisions concerned with certain supplies of services in the financial and their application in specific circumstances.
The circular provides information and guidance on the application of VAT rules in respect of two types of transactions that involve banks and financial institutions in KSA:
- Supplies of services by international banks established in KSA to non-resident customers.
- Incentives provided by credit card companies to banks in return for achieving operational targets.
The circular is based on the unified VAT agreement of the states of the Gulf Cooperation Council ( Unified VAT Agreement), Value Added Tax Law (VAT Law) and Value Added Tax implementing regulations as well as the general practice with respect to applicable rules.
Dubai: New Custom Duty Applicable on International Shopping exceeding AED 300
Date: 12 Jan, 2023
External URL: https://www.khaleejtimes.com/uae/dubai-new-customs-duty-now-applicable-on-international-shopping-exceeding-dh300
Dubai January 12, 2023:
Dubai has introduced new customs duty on goods bought internationally with a value of more than AED 300. This means that residents shopping internationally with a value of over AED 300 will have to pay a 5 percent import customs duty and 5 percent value-added tax (VAT).
“Customs duty rate has been set at five percent of the goods if their value exceeds AED 300, except where a rate of zero percent exemption applies according to the Unified Customs Tariff for the GCC States of 2022,” said Abdelhak Attalah, partner, maritime and international trade practice, Galadari Advocates and Legal Consultants.
Attalah further added that tobacco, tobacco products, e-cigarettes and vaping liquids are subject to a higher customs duty at the rate of 200 percent in addition to the sin tax which is applied also to sugary drinks.
ZATCA to Host 30 Specialized Workshops in February
Date: 11 Jan, 2023
External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_996.aspx
Riyadh January 11, 2023:
Zakat, Tax and Customs Conference to be held in Riyadh on 8th – 9th February 2023 will feature more than 30 specialized workshops in the tax sectors. Those interested to attend can register for the conference by logging onto ztc.sa. A group of specialized experts will present on various topics in both Arabic and English.
The conference, organized by the Authority, comes under the slogan ‘An Integrated Digital System to Sustain the Economy and Enhance Security’ and is sponsored by the Minister of Finance, Chairman of the Board of Directors of the Zakat, Tax and Customs Authority, His Excellency Mr. Muhammad bin Abdullah Al-Jadaan. It aims to discuss the most important global and local experiences and developments in the zakat, tax and customs sectors, and the digital transformation witnessed by the system.
Through organizing workshops accompanying the conference, the authority aims to enhance the tax culture and raise the level of compliance and public awareness of taxpayers, importers and exporters and all relevant parties.
ZATCA urges Taxpayers subject to Selective Goods Tax to submit Returns by Jan 15, 2023
Date: 10 Jan, 2023
External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_995.aspx
Riyadh January 10, 2023:
The Zakat, Tax and Customs Authority (ZATCA) has called on taxpayers from the business sector subject to selective goods tax to submit their tax returns for the past November and December, on January 15, 2023, at the latest.
The authority urged its taxpayers to quickly submit their declarations through the website ( zatca.gov.sa ) , in order to avoid a fine for failure to submit a declaration within the specified period at 5% of the value of the tax that should have been declared for every 30 days of delay in submitting the declaration.
The 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 derivatives.
Kuwait: KD 900M Collected in Taxes during Past 5 Years
Date: 04 Jan, 2023
External URL: https://www.arabtimesonline.com/news/government-collects-kd-900m-in-taxes-during-past-five-years/
Kuwait City January 4, 2023:
The Kuwaiti government collected about 900 million dinars in taxes from companies during the past five years, from April 2017 until the end of March 2022.
The total taxes were 787.6 million dinars, which came in the form of income tax from foreign companies and from Kuwaiti companies to support employment, zakat proceeds from Kuwaiti companies, and companies’ contributions to state services, in addition to about 110 million dinars from profits distribution and revenues for issuing tax certificates or others.
The data disclosed fiscal 2018/2019 witnessed the highest rate of collection of taxes on income, profits, and capital gains from companies and other projects, during which they collected 181.3 million dinars, in addition to a non-recurring rate of ‘dividend profits’ of about 109.94 million dinars, which is equivalent to the value of income tax from foreign companies for the same year bringing the total collection to 291.2 million dinars.
READ ALSO : No New New Taxes Eyed in Kuwait
KSA: ZATCA Implements the Integration Phase of E-invoicing
Date: 03 Jan, 2023
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_990.aspx
Riyadh January 3, 2023:
The Zakat, Tax, and Customs Authority (ZATCA) has begun applying the second phase of E-invoicing ‘Integration Phase’ since January 1, 2023, to the enterprises that were chosen within the first group which met the conditions necessary to complete this phase.
The Authority stated that the enterprises that began to connect their E-invoicing systems with the Fatoora platform were chosen based on the level of revenues subject to VAT for the year 2021 whose revenues exceed 3 billion Riyals.
ZATCA stressed that this phase aims to link and integrate the E-invoicing systems of taxpayers subject to the E-invoicing regulations with the Fatoora platform, as the Authority worked to notify the targeted enterprises to complete the procedures for applying the second phase of e-invoicing six months before the application.
In addition, the Authority claimed that the second phase has additional requirements, most notably connecting taxpayers’ electronic invoicing systems with the Authority’s system, issuing electronic invoices using a specific format, and including a number of additional elements in the invoice. The Authority is striving to impose this phase gradually and in groups, and it will directly inform the succeeding groups at least six months prior to the integration date.
Dubai Axes 30 Percent Tax on Alcohol Sales
Date: 02 Jan, 2023
External URL: https://www.khaleejtimes.com/uae/dubai-30-tax-on-alcohol-removed-personal-liquor-licence-to-be-free-of-cost
Dubai January 2, 2023:
From January 1, 2023 Dubai has suspended a tax of 30 percent on alcoholic beverages as well as dropped the personal liquor licence fee that was previously mandated to buy alcohol in the commercial and tourism hub.
However, a valid Emirates ID, or Passport for tourists, will still be required to apply for the license. Added to that a person must be at least 21 to drink legally in the UAE, and alcohol can only be consumed privately or in licensed public places.
The move of slashing the tax is expected to further boost the appeal of Dubai to tourists and expats towards its more liberal lifestyle, compared to other Gulf states.
FTA releases User Manual on EMARATAX Tax Group Registration
Date: 01 Jan, 2023
External URL: https://tax.gov.ae/DownloadOpenTextFile?fileUrl=en/VAT_VAT_Guides/Tax_Group_Registration/Register_Tax_Group_EN.pdf
Dubai January 1, 2023:
The United Arab Emirates (UAE) Federal Tax Authority (FTA) publishes a User Manual on ‘EMARATAX Tax Group Registration – Version 1.0.0.0’.
This manual is prepared to help VAT Tax Group representative members navigate through the FTA’s Emaratax website and create an account with the FTA. It also provides steps to submit a VAT Tax Group Registration Application. In addition, it offers you an understanding of the Login process, user types, forgot password and modify online user profile functionalities.
Note: The representative member must login into their EMARATAX account to initiate the VAT TAX Group Registration Application. Other Tax Group Members who are not a representative member will not be able to submit this application.
Click here to access the user manual.
ZATCA Determines the Criteria for Selecting the Taxpayers in Phase II of E-invoicing
Date: 28 Dec, 2022
External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_987.aspx
Riyadh December 28, 2022:
Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the second wave for implementing the “Integration Phase” of E-invoicing. The authority clarified that the second wave includes all taxpayers whose revenues subject to VAT exceeded (half a billion Saudi riyals) in 2021. VAT-registered taxpayers meeting the criteria should integrate their E-invoicing solutions with the FATOORA Platform starting from July 1, 2023.
ZATCA has stated that Phase Two requires additional requirements, the most prominent is to integrate taxpayer’s E-invoicing solutions with (FATOORA) Platform, issue electronic invoices based on a specific format, and include additional fields in the invoice. Furthermore, the second phase of E-invoicing would be implemented in waves, and ZATCA would inform the next waves at least six months prior the integration date.
It is noteworthy that the implementation of the Integration Phase of the first wave will be on January 1, 2023, for the taxpayers whose selection criteria were announced last June, after such taxpayers completed the necessary requirements to complete this phase.
FTA urges Taxpayers to Benefit from Administrative Penalty Re-determination facility before December 31
Date: 23 Dec, 2022
External URL: bit.ly/3vBba3i
Dubai December 23, 2022:
The Federal Tax Authority (FTA) has called on registered taxpayers to benefit from the facility to re-determine administrative penalties on tax violations to be 30% of the total outstanding amount that were not paid before June 28, 2021
The FTA stressed that the facility has set a deadline i.e on or before December 31, 2022 and that taxpayers eligible to benefit from the decision must complete all related procedures through the EmaraTax portal to be able to benefit from the facility.
The Authority explained that after December 31, 2022, tax registrants who have outstanding penalties from before June 28, 2021 will not be eligible to avail of the re-determination facility and will be required to pay their fines in total, instead of just 30% of them, if the required conditions are met within the deadline set by the Cabinet Decision on Re-Determining Administrative Penalties on Tax Violations in the UAE.
KSA Extends Penalty Waiver for all Taxes until May 2023
Date: 19 Dec, 2022
External URL: https://trendsmena.com/economy/zatca-extends-period-of-exemption-of-penalties-for-saudi-taxpayers/
Riyadh December 19, 2022:
The Zakat, Tax and Customs Authority (ZATCA) as part of its efforts to mitigate the effect of the coronavirus (COVID-19) pandemic again extended the amnesty initiative that waives penalties on all taxes for another 6 months, until the end of May 2023 (previously set to close 30 November 2022).
The authority pointed out that extending the initiative would enable taxpayers to benefit from the initiative and its goals, and alleviate economic burdens arising from the COVID-19 pandemic on businesses.
Highlights of the decision include:
Duration
- The extended tax amnesty covers the period from 1 December 2022 to 31 May 2023.
Coverage
The amnesty initiative applies to fines and penalties relating to the following taxes:
- Value-added tax
- Withholding tax
- Excise tax
- Corporate income tax
- Real estate transaction tax
For any additional information with respect to this alert, please get in touch with our tax experts.
FTA launches Strategy to explore Future of Tax Sector
Date: 15 Dec, 2022
Dubai December 15, 2022:
The Federal Tax Authority (FTA) has launched its strategy to explore the future of the tax sector and strive for global leadership. The strategy is built on a thorough assessment and follows comprehensive plans developed to map out the future of the UAE tax system, in line with international best practices.
The Authority explained that launching the strategy formed part of its activities to mark World Future Day 2022 which began last week.
FTA Director General His Excellency Khalid Ali Al Bustani said: “The Federal Tax Authority’s strategy for exploring the future of the tax sector primarily aims to identify the basic motives, scenarios, and proactive measures required for sustainably upgrading tax procedures in the UAE, and promoting a culture of future-mapping within, paving the way for it to become a world leader in the field.”
“Over the past few days, the Authority organised a series of events to mark World Future Day, including an awareness seminar on the methods and tools of forecasting the future, which highlighted the importance of the FTA’s participation in celebrating World Future Day, and showcased various effective future-planning mechanisms, with detailed steps and frameworks,” H.E. added.
UAE Issues Federal Decree-Law on 9% Corporate Tax for 2023
Date: 09 Dec, 2022
External URL: https://www.khaleejtimes.com/business/finance/uae-issues-federal-decree-law-on-9-corporate-tax-set-to-begin-next-year
Dubai December 9, 2022:
The UAE has issued Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses (The Corporate Tax Law). This means businesses will be subject to UAE Corporate Tax from the beginning of their first financial year which starts on or after June 1, 2023.
The UAE’s Corporate Tax regime will levy a standard rate of 9% for taxable profits exceeding AED 375,000. Profits up to and including that threshold will be taxed at a 0% rate to support small businesses and start-ups.
The Ministry of Finance (MoF) confirmed the Federal Decree-Law on Taxation of Corporations and Businesses is an important milestone in building an integrated tax regime that supports the strategic objectives of the UAE and enhances its global economic competitiveness, as well as provides the national economy with sufficient flexibility to deal with and support international financial systems within the framework of the UAE’s established partnerships.View the MoF’s newly released Frequently Asked Questions that supplement your queries.
Read more.UAE VAT Law: Changes in Gold and Diamond sector Announced
Date: 08 Dec, 2022
External URL: https://www.khaleejtimes.com/uae/uae-announces-vat-changes-in-gold-diamond-sector
Dubai December 8, 2022:
The Ministry of Finance (MoF) announced changes to the VAT rules for gold and diamond suppliers. The amendment comes as part of a resolution issued by the cabinet on workmanship services when supplying gold and diamonds between registrants.
According to the resolution, there will be a temporary replacement for the definition of “goods” contained in Article (1) of Cabinet Decision No. (25) of 2018 on the Mechanism of Applying VAT on Gold and Diamonds between Registrants in the State to be gold, diamonds and any products whose main component is gold or diamonds, which may include workmanship services directly related to the supply of these commodities”.
This amendment will be applied for the period from June 1, 2018, to December 31, 2022, noting that the term provided in the aforementioned Cabinet Decision No. (25) of 2018 (goods) will be re-applied starting from January 1, 2023.
Join now! FTA holds Webinars Series in December to Orient Users towards EmaraTax
Date: 06 Dec, 2022
External URL: https://tax.gov.ae/en/emaratax/calendar.of.events.emaratax.aspx
Dubai December 6, 2022:
To orient tax payers towards the new payment portal EmaraTax, FTA has released a recorded webinar in English. An Arabic recording of the webinar will be made available soon.
In order to gain an in-depth overview on FTA’s EmaraTax click here to view the webinar (on YouTube).
During this month, FTA will also be running a series of online orientation sessions for EmaraTax users. There will be two sessions per day:
• 10 – 11 am providing you an opportunity to raise specific questions about using EmaraTax;
• 3 – 4 pm focusing on specific aspects of EmaraTax, in particular password reset, returns submission and payments.
Please join any session that is of interest to you and you can access the webinars via WebEx. We recommend that you download WebEx in advance to avoid any possible delays when joining your chosen session. The live webinars are currently conducted in English as per the schedule.
FTA releases Guide on Password Reset Process to login to EmaraTax
Date: 05 Dec, 2022
External URL: http://www.allaboutvat.com/wp-content/uploads/EmaraTax-Reset-password-to-login.pdf
Dubai Dec 5, 2022:
This is to update you that FTA has released detailed guidelines on resetting of password to login to EmaraTax portal. The document contains a step-by-step guide to resetting your password and briefs you the corresponding steps and scenarios bound to occur.
Kindly click here to view the document for your reference. We hope you will find it useful.
Please feel free to reach out to us on WhatsApp in case of any clarifications.