GCC Tax & Other Regulatory Communique April 2024

1.?UAE VAT Updates

Guide for linking the EmaraTax account with UAE Pass account

The Federal Tax Authority (‘FTA’) of UAE has issued a step-by-step guide for linking the EmaraTax account with UAE Pass account. It is pertinent to note that UAE Pass-based login shall be effective from 30 September 2024.

Professional Standards for Tax Agents

The Federal Tax Authority (‘FTA’) of UAE has issued a Decision outlining “Professional Standards for Tax Agents”. Said Decision provides clarity on standards, controls, conditions and procedures related to Tax Agents.

2.?UAE CORPORATE TAX UPDATES

Corporate Tax Guides – Qualifying Group Relief

The Corporate Tax Guide was issued by the Federal Tax Authority to provide general guidance on Qualifying Group Relief (‘QGR’)

Article 26 of the Corporate Tax Law allows assets or liabilities to be transferred between two Taxable Persons that are members of the same Qualifying Group without creating a gain or loss for Corporate Tax purposes. Broadly, this relief allows tax neutral restructuring of assets and liabilities where there is no change in the overall ownership of the assets or liabilities from a group perspective.

Corporate Tax Guides – Qualifying Group Relief

The Corporate Tax Guide was issued by the Federal Tax Authority to provide general guidance on Business Restructuring Relief (‘BRR’)

Article 27 of UAE CT law allows tax-neutral business transfers between taxable persons in two scenarios: (i) when a business (or independent part thereof) is transferred to another taxable person, and (ii) when a business is transferred and the transferor ceases to exist.

3.?UAE OTHER REGULATORY UPDATES

Taxpayer’s Charter by FTA

The Federal Tax Authority (‘FTA’) of UAE has recently issued?the “Taxpayer Charter” which contains the key rights and obligations of taxpayers which every taxpayer should comply with.

4.?KSA OTHER REGULATORY UPDATES

Guidelines for Regional Headquarters

The ZATCA of KSA has issued the “Guide for Regional Headquarters in the Kingdom” in Arabic. Said guideline aims to provide required clarifications and guidance on tax provisions and regulations concerning Regional Headquarters in KSA and also aims to reduce the ambiguity facing the Regional Headquarters.

Phase 2 of E-invoicing – 11th wave

The ZATCA of KSA has issued the criteria for taxpayers to be eligible for inclusion in the 11th wave of Phase 2 (“Integration Phase”) of E-invoicing. Based on the latest update, ZATCA shall start notifying all targeted taxpayers in the eleventh wave to integrate their e-invoicing solutions with the (FATOORA) Platform from 01 November? 2024.