GCC Tax & Other Regulatory Communique December 2024

1.?UAE VAT UPDATES

Grace period granted by FTA to update/rectify tax records on Emara Tax Portal

The Federal Tax Authority ('FTA')?of UAE has recently issued a Public Clarification introducing a?mechanism for disputing tax assessments and related administrative penalties. As per said Public Clarification, a person may submit a request for tax assessment review before submitting a request for reconsideration in certain cases.

Public Clarification on Tax Assessment Review

The Federal Tax Authority ('FTA')?of UAE has recently issued a Public Clarification introducing a?mechanism for disputing tax assessments and related administrative penalties. As per said Public Clarification, a person may submit a request for tax assessment review before submitting a request for reconsideration in certain cases. It is pertinent to note that said tax assessment review shall be done by independent FTA's officials (i.e. FTA's officials that were not part of the team that conducted the tax audit) based on the facts and evidence provided by the person as well as the audit procedures conducted during the audit by the FTA.

Guide on Private Clarification

The Federal Tax Authority ('FTA') of UAE has recently issued a guide on "Private Clarifications". It is pertinent to note that "Private Clarifications" are clarifications issued by the FTA in the form of a document that is stamped and signed by the Director General or his delegate/representative, in relation to specific tax technical matters.

2.?UAE CORPORATE TAX UPDATES

Tax Procedures – Private Clarifications (‘TPGPC1’)

Private Clarifications documents are issued to a specific taxpayer, according to the Clarification request submitted on EmaraTax and the documents attached to the request.

The Clarification will cease to be effective if the provisions of the tax legislation that are the subject thereof are repealed or amended, or a public clarification or guide is later issued on the same subject following the issuance of the Clarification.

Tax Procedures Public Clarification – Tax Assessment Review (‘TAXP008’)

The Federal Tax Authority (‘FTA’)? of the UAE has recently issued a Public Clarification introducing a mechanism for disputing tax assessments and related administrative penalties.

The purpose of the tax assessment review is to provide a process whereby a person can request a review of the tax assessment (or part thereof) as well as the related administrative penalties assessment.

Ministerial Decision No. 261 of 2024 on Unincorporated Partnership, Foreign Partnership and Family Foundation

The UAE Ministry of Finance announces amendments and provisions related to the Taxation of Unincorporated Partnerships, Foreign Partnerships, and Family Foundations under Corporate Tax Law. ?????? ???????????????????? ?????????? ???????? 1st ???????? ????????.

Ministerial Decision No. 127 of 2023 has been repealed.

Corporate Tax Guide – Tax Returns (‘CTGTXR1’)

The Federal Tax Authority (‘FTA’) of the UAE has recently issued a Corporate Tax Guide for Tax Returns to provide guidance on filing and completing of Tax Returns. We have summarized below our key observations.

It is pertinent to note that some schedules mentioned in this Guide are not yet available on the current version of the Corporate Tax Return, and will be updated shortly.

3.?KSA VAT UPDATES

VAT Refund for Tourists from 2025

The KSA is set to introduce VAT refunds for tourists starting in 2025. Said initiative is part of Saudi Arabia’s Vision 2030 plan to enhance its appeal as a tourist destination. Refunds will be processed by authorized service providers who will verify eligibility and manage claims. It is to be noted that tourists can claim VAT refunds on personal use goods purchased in KSA, excluding certain items like vehicles, tobacco, and food.

4.?BAHRAIN VAT UPDATES

Inspection Visits to ensure Compliance

The National Bureau for Revenue (‘NBR’) has conducted 168 inspection visits within the local markets across different governates in the Kingdom of Bahrain during October 2024, as a part of the Country's continuous commitment to enhance the level of business compliance within the local markets and ensuring adherence to all regulations and legislation for the effective implementation of VAT and Excise including the Digital Stamps Scheme.

5.?OMAN OTHER REGULATORY UPDATES

-The Oman Tax Authority (‘OTA’) has recently issued Guides for modification of selective excise tax data and cancellation?of selective excise tax data.

-The OTA has also released a Standard Excise Tax Rate Guide as well as a Guide prescribing procedure for refund of Excise Tax.

-The OTA has released a Guide for Excise Goods Tax Status Report Guidelines as well as the Guide for requesting?to change the price of?a selective excise item.?

6.?OTHER REGULATORY UPDATES

Anti-Dumping Measures on Imports of Electrical Fittings, etc. from China

The Dubai Customs has issued a Custom Notice No. (06/2024) regarding the imposition of final anti-dumping measures on imports into GCC Countries of electrical fittings, switches, plugs, and sockets originating or exported by the People's Republic of China. The final anti dumping duty will be collected by Dubai Customs as percentage of Customs value of Imports as per table provided in the Notice. Further said duty shall apply for a period of five years effective from September 26, 2024.