GCC Tax & Other Regulatory Communique February 2024

1.?UAE VAT Updates

Public Clarification on "SWIFT Messages”

The FTA of UAE has issued a Public Clarification on "SWIFT messages”. It clarifies the FTA’s position on the acceptability of SWIFT messages for the purposes of documentation requirements and to support input tax recovery.

2.?UAE Corporate Tax Updates

Registration Timeline for Corporate Tax

Federal Tax Authority Decision No. 3 of 2024 outlines the registration timelines for Corporate Tax. The decision has stipulated the timelines to Taxable Persons for obtaining registration under the UAE CT Law.

3.??VAT in KUWAIT

VAT may not be implemented in Kuwait in near future

Based on media reports, it is to be noted that VAT may not be implemented in Kuwait in near future. However, the Government of Kuwait aims to introduce Excise tax and Corporate tax within next three years.

4.?KSA Other Regulatory Updates

Tax Rules for Regional Headquarters

The ZATCA of KSA has recently published “Tax Rules for Regional Headquarters”. Said rules provide the terms and conditions that multinational companies are willing to establish their Regional Headquarters in KSA. It is to be noted that the said decision is effective from 16 February 2024.

Invoice Number (020) in Payment Operations

The ZATCA of KSA has requested the taxpayers and customers to use invoice number ‘020’ in payment operations through all payment systems, while paying Zakat, Tax, and Customs dues, stating that the invoice number ‘030’ previously allocated to customs services has been canceled.