GCC Tax & Other Regulatory Communique May 2024
1.?UAE VAT Updates
Public Clarification on Functions of Director
The Federal Tax Authority ('FTA') of UAE has issued a Public Clarification on "Performing the function of Director on a?Board of Directors by a Natural person". It is pertinent to note that said Public Clarification replaces Public Clarification VATP031.
Public Clarification on “Manpower or Visa Facilitation Services”.
The Federal Tax Authority ('FTA') of UAE has issued a Public Clarification on “Manpower or Visa Facilitation Services”. Said Public Clarification provides guidance on determining the nature of manpower or visa facilitation related services.
2.?UAE CORPORATE TAX UPDATES
Corporate Tax Guides – Free Zone Person
The Ministry of Finance (MoF), UAE had released the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (‘UAE CT Law’) on 9 December 2022, which is applicable from the financial year commencing on or after 1 June 2023. Per the provisions of the UAE CT Law, a Qualifying Free Zone Person (‘QFZP’) shall be subject Corporate Tax as under:
0% on its Qualifying Income, and
9% on its Taxable Income that is not Qualifying Income.
3.?UAE OTHER REGULATORY UPDATES
领英推荐
Customs tariff applied on Imported goods originating from India
The Dubai Customs has issued a Custom Policy No (57/2024) on “Conditions and Regulations for the implementation of the Comprehensive Economic Partnership Agreement(CEPA) between the United Arab Emirates and the Republic of India”. As per said policy, the Customs tariff applied on imported goods originating from India when exported directly to the UAE shall be in accordance with the Categories listed in Annex (B/2) of the Agreement for 2024-2025 from 01 May 2024 to 30 April 2025.
4.?VAT in Bahrain
VAT Real Estate Guide
The National Bureau for Revenue ('NBR') of Bahrain has recently updated the “VAT Real Estate Guide”. Said guide sets out the general principles of VAT in relation to the Real estate sector in the Kingdom of Bahrain.
VAT General Guide
The National Bureau for Revenue (‘NBR’) of Bahrain, has recently updated the “Vat General Guide”. Said guide provides guidance on how to claim input VAT charged on expenses related to mobile phones and vehicles used for both business and non-business purposes.
5.?KSA OTHER REGULATORY UPDATES
Tax-free temporary entry system for goods
Based on the media reports, it is to be noted that the Federation of Saudi Chambers (FSC) announced that Saudi Arabia is now a member of the World ATA Carnet Council (WATAC) and from June month, the country will start using the ATA Carnet system for temporary entry of goods.
The Real Estate Transaction Tax Implementing Regulations
The ZATCA of KSA has amended the Real Estate Transaction Tax (‘RETT’) Implementing Regulations. It is pertinent to note that said amendments introduced exemptions under RETT, including exemptions for individuals exchanging their owned property as a share in kind for investment units in a real estate investment fund.