In brief Following rounds of consultation, the United Arab Emirates (UAE) has issued the new and much anticipated Federal Law No. 3 of 2022 regulating Commercial Agencies (“New Law”), repealing and replacing the longstanding Federal Law No. 18 of 1981, which has been amended many times including most recently in May 2020. The New Law introduces various changes and grants for the first time, the right for international companies that are not owned by UAE…
In brief The UAE Federal Law No. 18 of 1981 regulating Commercial Agencies (Law) was amended for the fourth time on 28 May 2020 by Federal Law No. 11 of 2020 (the Amendment). The last amendment had taken place in 2010. The Amendment granted, for the first time, the right for companies incorporated in the United Arab Emirates (UAE) that are not 100% owned by UAE nationals, namely public joint-stock companies with at least 51%…
The Kingdom of Saudi Arabia (KSA) has announced to triple the rate of VAT to 15%, which will come to effect on 1 July 2020. This is a significant rate increase and one of the fiscal measures taken by the KSA Government to mitigate the negative effects of the COVID-19 pandemic and other macro-economic developments on public finance. The increased rate is expected to apply to all supplies of goods and services that are currently…
The COVID-19 pandemic continues to have a heavy impact on the global economy. The spread of the virus is constraining the supply and demand for goods and services. As a result, companies are considering the potential cancellation of contracts and the impact on their cash flows. In this special edition of the Middle East Tax Newsletter, we set out the VAT aspects of the potential cancellation of contracts. We also provide suggestions to optimize cash…