Benjamin Filaferro, Author at LexisNexis Middle East

Weekly Spotlight: Bahraini Electricity and Water Authority Loses VAT Legal Case

13/01/201911/12/2019
by Benjamin Filaferro

This week the spotlight is on tax and finance developments in Bahrain, where VAT came into force on 1 January 2019. Elsewhere, a Bahraini lawyer brought a claim against the Electricity and Water Authority before the High Civil Court requesting the annulment of a VAT decision issued by the Authority.

The lawyer benefits from water and power services for non-commercial purposes who sent a utility bill requesting payment of 5% VAT on these services. He cited Article 9 of Bahrain Decree Law No. 48/2018 on VAT which says the Authority cannot charge VAT if it was offering the service as a sovereign body. They can only charge VAT if it is offering commercial activities like those offered by the private sector.

The court accepted the lawyer’s arguments and said the Authority didn’t have the right to charge nationals VAT for power and water if it is for non-commercial activities. The court requested the Authority cancel the decision and pay legal costs.

News developments

Kuwait: Free Trade Zone Decision Cancelled

12/01/201911/12/2019
by Benjamin Filaferro

According to local newspaper reports, Kuwait’s Council of Ministers has cancelled Kuwait Decision No. 512/2018 establishing a free zone in Shuwaikh port. However, the Public Authority for Industry will continue to undertake the tasks entrusted to it in the area until 1 April 2019. The Government has entrusted the Kuwait Ports Authority, together with the Kuwait Municipality to make future plans and projects for ports according to the country’s fourth organisational chart. Contracts with investors demanding the evacuation of buildings and land and handing them over to the Government should not be renewed.

News developments

Saudi Arabia: Supervisory Health Council to be Established

12/01/201911/12/2019
by Benjamin Filaferro

Saudi Arabia’s Shoura Council has approved an amendment to Article 16(A) of the Health Law following recommendations from the health committee. Under the amendment, a health council will be established and linked to the president of the council of ministers. The Council’s chairman will be of Minister grade and appointed by a Royal Decree. Members of the council will include a representative of the Health Ministry and representatives from health services from other relevant ministries. The aim is to boost the council’s independence and enable it to exercise its supervisory and regulatory roles.

Weekly Spotlight

Weekly Spotlight: General Tax Authority to be Estabilished in Qatar

23/12/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Qatar, where the country’s Finance Ministry has announced it will establish a General Tax Authority. The Ministry also announced they will not introduce Income Tax on individuals or VAT in 2019. The Authority will be established as a stand-alone entity but will be supervised by the Finance Ministry. It will be responsible for implementing all tax laws. The Authority will be able to set up all related bylaws, procedures and instructions to implement tax legislation. It will also review and assess tax return forms submitted by establishments and collect taxes from relevant entities. In addition, it will represent the country in the relevant international and regional organisations as well as at international conferences and events. Finally, it will have the power to sign agreements with other countries to prevent double taxation. The Ministry added they will issue additional exemptions for key economic sectors and will not impose tax on investments in shares and profits. However, they will introduce an excise tax on goods which negatively affect health from the start of next year. It will include a 100% tax on tobacco and its products and energy drinks and a 50% tax on sugary drinks.

News developments

Regulations to UAE Federal Law No 3/2016

22/12/201811/12/2019
by Benjamin Filaferro

The UAE’s Prime Minister has issued the Implementing Regulations to Federal Law No 3/2016 on the rights of the child in line with Cabinet Decision No 52/2018. The Regulations cover child labour, procedures for reporting violations of children’s rights in educational institutions, terms of reference of the Child Protection Unit, conditions for child protection specialists, preventive and protection measures, foster family conditions and obligations, and child custody regulations for guardians. Employing a child will require special permission from the Human Resources and Emiratisation Ministry. The child should not be under 15 and must be medically fit for work. The Regulation also bans children from entering hazardous places including laboratories or places where toxic gases are emitted, as well as quarries, mines, conflict zones, environmental disasters, adult entertainment centres, explosives manufacturing facilities and other high risk workplaces.

News developments

Bahrain: Consultation on Draft Crypto-Asset Platform Operator Rules launched

22/12/201811/12/2019
by Benjamin Filaferro

Bahrain’s Central Bank has launched a consultation on draft crypto-asset platform operator rules. The consultation ends on 31 December 2018. The proposed framework will cover licensing requirements, financial resources and measures to safeguard client or customer interests, technology standards and cyber security risk management measures, reporting and other requirements. The aim is to provide a regulatory framework for licensing and supervising crypto-asset services including those provided by a platform operator as a principal, agent and as a custodian, in or from the Kingdom.

Weekly Spotlight

Weekly Spotlight: Draft UAE Federal Maritime Law Being Prepared

16/12/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in the UAE, where the Federal Government reportedly plans to adopt a new maritime law. It is understood the first draft will be ready in early 2019. It will then be circulated for a consultation and submitted to the Government to review.

It will support port infrastructure in the country with the aim of attracting participation in its shipping industry and address the issue of diversity of shipping facilities. It will also include provisions for freight forwarders, cargo and ports. In addition, it will cover the UAE National Ship Registry, as well as environmental pollution, health and safety and logistical operations.

Elsewhere, the country’s Health and Prevention Ministry has approved a draft federal law on legal protection for non-medically trained persons providing emergency assistance and relief. The Head of the Emirates Emergency Division of the Emirates Medical Society said the law will come into force in 2019 and will make the UAE the first Arab nation to apply this type of law. It will protect people from civil or criminal prosecution when providing bona fide assistance or relief to another person in an emergency. The law also covers the requirement to inform the authorities in emergency situations and the provision of ambulances or other rescue operations.

News developments

Bahrain: Real Estate Regulatory Authority License Deadline Confirmed

15/12/201811/12/2019
by Benjamin Filaferro

Bahrain’s Real Estate Regulatory Authority has urged property managers and owner association managers to apply for a license from the Authority ahead of the 4 January 2019 deadline. Real estate brokers, sales agent and developers have already had to apply for licenses. Property managers and owner association managers are the latest categories to be regulated by the Authority. From 5 January 2019, property managers and owner association managers who operate without a license will be breaking the regulatory regime and will have the penalties outlined in Bahrain Law No. 27/2017 imposed on them.

News developments

Oman: VAT Implementation Could Be Introduced Earlier than Expected

15/12/201811/12/2019
by Benjamin Filaferro

Preparations for VAT in Oman are continuing. Comments made by a representative of the Finance Ministry in a seminar organised by the Oman Chambers of Commerce and Industry indicate VAT implementation could be introduced as early as 1 September 2019. Industry body meetings, including the financial sector and the telecoms industry, are now starting, with a view to the Government devising practical guidelines for dealing with VAT compliance requirements.

Weekly Spotlight

Weekly Spotlight: New Omanisation System Introduced

09/12/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Oman, where the Sultanate’s Manpower Ministry has announced it has launched an updated version of its automatic updates licensing service on Omanisation in firms. The new system provides Omanisation rate indicators electronically and has a colour coding system. Green means the target has been achieved while yellow means the firm is 50% of the way towards meeting the target. Red means the target is not being met at all. The aim is to improve Omanisation rates in the Sultanate. The rates will be displayed when firms submit work permit applications and will affect the speed of work permits being issued in the case of those firms categorised as green or yellow. If a firm is categorised as red it will be shut down.

Elsewhere, according to local newspaper reports, the Manpower Ministry has announced employees in three sectors will have to agree to alcohol and drug tests. The oil and gas, port and airport and electricity and water sectors are affected. The aim is to increase workplace safety in these sectors and amends occupational health and safety provisions.

Under the amendments, employers must proactively ensure workplace facilities are alcohol and drug free. They may also carry out unannounced searches on company property and managers will be able to decide when a search or screening process may be carried out. In a separate development, the Oman Society for Petroleum Services has announced they are preparing to introduce guidelines to require their members to put policies and procedures in place to enforce this new regulation.