In brief The need for the Tax Authorities to have better control and oversight on e-commerce transactions and the respective tax revenues has prompted the UAE Ministry of State for Financial Affairs to issue a Ministerial Decision No. 26 of 2023 on the Criteria and Conditions for Electronic Commerce for Purposes of Keeping Records of Supplies Made (“Ministerial Decision”) in February 2023. This new reporting requirement is applicable for taxpayers whose e-commerce taxable supplies exceed…
In brief In February 2023, the Kingdom of Saudi Arabia (“KSA”) Tax Authority released a Tax Circular outlining the mechanism, controls and procedures for the tax refund to persons who are not residents of the GCC Member States and carry out an economic activity with VAT (or a similar tax system) registration in another country (“non-resident taxpayers”) in accordance with Article (67) of the GCC VAT Framework. Recommended actions In response to the opening of…
In brief The UAE Ministry of Finance (“MoF”) yesterday announced the introduction of a corporate tax (“CT”) regime that will apply to businesses. It will become effective for financial years starting on or after 1 June 2023. The headlines are that the tax rate will be 0% for taxable income up to AED 375k and 9% on taxable income above AED 375k. Large businesses (expected to be those with revenue above EUR 750m) may be…
In brief Our Middle East Tax Newsletter aims to provide you with regular updates, insights and practical guidance on the tax implications of doing business in the region. In this issue, we provide a roundup of the current status of Value Added Tax (VAT) and the most recent tax related developments across the Gulf Cooperation Council (GCC), as well as their implications on the financial position of businesses. Oman VAT On 12 October 2020, it…
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…