Tanya Jain, Author at LexisNexis Middle East

UAE: Federal Tax Authority Issues Corporate Tax Guide

13/09/202313/09/2023
by Tanya Jain

The UAE’s Federal Tax Authority has announced it has issued a Corporate Tax Guide. The Guide has been issued following the issuing of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses (Corporate Tax Law) on 3 October 2022 and its publication in the Official Gazette on 10 October 2022.

The law provides the legislative basis for imposing a federal tax on corporations and business profits in the UAE. The provisions of the law will apply to tax periods commencing on or after 1 June 2023.

Various Cabinet and Ministerial Decisions have since been published. The Guide is aimed at providing general guidance on corporate tax in the UAE with a view to making the provisions of the Corporate Tax Law as understandable as possible to readers.

It provides readers with an overview of the main corporate tax rules and procedures, including the determination of the corporate tax base, the calculation of corporate tax, the filing of corporate tax returns and other related compliance requirements and assistance with the most common questions businesses might have. In addition, the guide explains where further assistance should be sought if there are questions about the guide’s contents or areas not specifically dealt with in the guide.

It covers the fundamentals of the corporate tax regime in the UAE, including what corporate tax is, who is subject to it, what types of income are taxable and how a taxable person’s corporate tax liability is calculated as well. Finally, the guide explains the corporate tax administration process, from Tax Registration and record keeping to submitting returns and making payments.

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News developments

Saudi Arabia: Implementing Regulations to Data Protection Law Published

13/09/202313/09/2023
by Tanya Jain

Saudi Arabia’s Authority for Data and Artificial Intelligence has published the Implementing Regulations to the Data Protection Law (Saudi Arabia Cabinet Decision No. 98/1443). Saudi Arabia Administrative Decision No. 1516/1445 will come into force on 14 September 2023.

The published regulations have omitted the definition of secondary use but not the concept of secondary processing and its having special requirements. They have also omitted the legal basis requirement for exercising rights.

In addition, they have omitted Article 33 on the transfer or disclosure of data to an entity outside of the Kingdom and Article 3 on the legal basis for processing. Finally, pseudonymisation will now be known as coding.

They will be published in the Official Gazette.

They have also published Regulations on cross-border transfers. Under Saudi Arabia Administrative Decision No. 1517/1445, controllers should check and ensure there are appropriate conditions that allow the transfer or disclosure outside Saudi Arabia and provide adequate protection to the personal data and the data subject’s rights.

They must limit the transfer or disclosure of personal data outside Saudi Arabia to the minimum necessary to achieve the transfer or disclosure purpose. This will be determined using data maps which indicate the need to transfer or disclose each piece of data and link it to each processing purpose outside the country. The requirements also apply to metadata, operational data, backup data, monitoring systems data, support data and data derived from personal data which directly or indirectly identifies a data subject.

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News developments

Qatar: Cabinet Approves Control of Precious Metals Draft Law

13/09/202313/09/2023
by Tanya Jain

Gulf Times, 6 September 2023: Qatar’s Cabinet has approved a draft law regarding control of precious metals and valuable stones. It has been proposed and approved to keep up with developments in control over precious metals and valuable stones.

If approved, it will replace Qatar Law No. 4/1978.

The Cabinet also approved a draft law amending Qatar Law No. 1/2012 on the regulation and control of advertisement placement. They have referred it to the Shoura Council to consider.

Finally, they reviewed the results of a study on proposed amendments to the country’s Labour Law.

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News developments

Oman: E-commerce Decision Issued

13/09/202313/09/2023
by Tanya Jain

Oman Daily Observer, 10 September 2023: Oman’s Commerce, Industry and Investment Promotion Ministry has announced it has issued Oman Ministerial Decision No. 499/2023 to regulate the practice of e-commerce activity in the Sultanate.

E-stores will also have to protect consumer data. Vendors must maintain the confidentiality of consumer data and disclose measures taken to protect the data. They must immediately contact relevant authorities where there is a breach and provide a clear framework for receiving and handling consumer complaints as well as an exchange and return policy on par with current laws and contact information.

A licence to practice e-commerce must be obtained by submitting an electronic application via the Invest Easy portal.

It has been issued as part of a national e-commerce plan and is aimed at creating a legal and regulatory environment for the development and promotion of e-commerce. As part of the plan, an e-commerce complex will be established and the necessary infrastructure to support the sector will be developed.

It is also aimed at documenting local e-stores and facilitating access to e-stores organising operations related to buying and selling via the Internet and reducing e-commerce-related fraud. In addition, it is aimed at keeping up with e-commerce regulation and e-stores monitoring development.

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News developments

Kuwait: Expatriates’ Residency Law Amended

13/09/202313/09/2023
by Tanya Jain

Arabian Business, 10 September 2023: Kuwait’s Interior Minister has issued a Ministerial Decision amending the Expatriates’ Residency Law.

Under the amendment, expatriates have to pay off all of the debts they owe to state departments before they are allowed to renew or transfer their residency visas.

The outstanding debts can be paid via the websites of the relevant state department or via the Sahel application. For residency to be issued, renewed, or transferred to another sponsor, an applicant must also pay the Health Ministry’s health insurance fee.

The Decision has been published in the Official Gazette and came into force on its published date (10 September).

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News developments

Dubai: DIFC Data Protection Regulation Amendments Enacted

13/09/202313/09/2023
by Tanya Jain

The Dubai International Financial Centre (DIFC) has announced it has enacted amendments to its Data Protection Regulations.

Among other amendments, the Centre has enacted the region’s first regulations on the processing of personal data via autonomous and semi-autonomous systems such as Artificial Intelligence or generative, machine learning technology. Regulation 10 creates space for the DIFC to be a platform for interoperability of the many and varied guidelines and principles issued by sovereign governments and non-governmental organisations. The creation of a plug-and-play space for the application of best-fit principles to Artificial Intelligence technology development is fundamental, responsible and ethical processing of personal data in such systems.

The amendments also provide clarity on personal data breach assessments and reporting obligations. This will include situations where a temporary custodian finds personal data that has been inadvertently left behind or lost.

In addition, they provide clarity on the use and collection of personal data for marketing and communication purposes, particularly in terms of appropriate notices when employing systems that may impair data individuals’ rights to restrict or remove their personal data, default cookies settings and conditions for consent.

They also provide clarity on investigations and the enforcement powers of the Commissioner when a controller or processor may employ unfair or deceptive practices.

The Commissioner’s Office is also considering testing use cases through participation in a regulatory sandbox comprised of technology developers, users, regulators and non-governmental or quasi-governmental organisations.

Guidance to accompany the updated Regulations will be issued in due course.

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News developments

Abu Dhabi: First Investment Fund Manager Launched

13/09/202313/09/2023
by Tanya Jain

Arabian Business, 11 September 2023: Abu Dhabi’s Investment Company has announced it has launched the first investment fund manager under new Securities and Commodities Authority regulations.

Invest AD Global Asset Manager will launch investment products in alternative asset classes and equities, together with leading global asset managers.

The manager aims to provide investors in the UAE with access to tailored investment solutions.

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News developments

UAE: Federal Tax Authority Urges Businesses to Register for Corporate Tax

07/09/202307/09/2023
by Tanya Jain

Gulf News (United Arab Emirates), 5 September 2023: The UAE’s Federal Tax Authority has urged businesses not to delay registering for corporate tax. Listed companies and private businesses whose financial years start on 1 June 2023 especially should not delay registering.

These companies have until February 2025 to pay their corporate tax obligations for the current financial year. Registration can be done via the EmaraTax portal on the Authority’s website.

Those who are already registered for VAT and excise tax can log in to their tax account on the EmaraTax portal. They will then need to select the taxable person, select the option to register for corporate tax and proceed with filling the registration form and providing documentation.

Once the application is approved, a Tax Registration Number for corporate tax will be issued.

Taxpayers who are not registered for VAT or excise tax will need to create a new user profile on the portal using the eservices.tax.gov.ae link and create an account using their email ID and phone number. Once the user profile has been created, registration can be completed by creating a taxable person profile, selecting the option to register for corporate tax and applying for registration.

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News developments

Saudi Arabia: Labour Law Penalties Regime Amended

07/09/202307/09/2023
by Tanya Jain

Gulf News (United Arab Emirates), 3 September 2023: Saudi Arabia’s Human Resources and Social Development Ministry has announced a raft of amendments to labour law penalties in the Kingdom. The fines will be imposed based on the category of the establishment. Categories are now determined by the total number of employees.

Category A includes entities with more than 50 employees, Category B is designated for those with 21 to 49 employees and Category C encompasses establishments with one to 20 employees.

In terms of employers who fail to comply with Saudisation quotas or employ non-Saudis in roles reserved for Saudi nationals, offenders in Category A will be fined 8,000 Riyals, offenders in Category B 4,000 Riyals and offenders in Category C 2,000 Riyals.

When it comes to non-compliance with protection, safety, and occupational health standards, the penalties have also been amended. Offenders in Category A will be fined 5,000 Riyals instead of 10,000 Riyals, offenders in Category B 2,500 instead of 5,000 Riyals, and offenders in Category C between 1,500 instead of 2,500 Riyals.

The penalties for those who do not establish appropriate safety guidelines have also been amended. Offenders in Category A will be fined 1,000 Riyals instead of 5,000 Riyals. Offenders in Category B will be fined 500 Riyals instead of 2,000 Riyals and offenders in Category C 300 Riyals from 1,000 to 300.

Those who employ workers under extreme weather conditions without necessary safety measures will be fined 1,000 Riyals, regardless of the category they are in. Entities who fail to provide medical insurance to employees and their families will be fined 1,000 Riyals if they are in Category A, 500 Riyals if they are in Category B, and 300 Riyals if they are in Category C.

Those who employ minors will be fined 2,000 Riyals if they are in Category A. Employers who hire women within six weeks after childbirth will be fined 1,000 Riyals.

Category A establishments who employ Saudis in roles reserved exclusively for them will be fined 1,000 Riyals. Offenders in Category B will be fined 5,000 Riyals and offenders in Category C 2,500 Riyals. Entities who misrepresent data to the Ministry will be fined 3,000 Riyals instead of 20,000 Riyals.

Category A entities who carry out discriminatory hiring practices will be fined 3,000 Riyals, while those in Category B who commit the offence will be fined 2,000 Riyals and offenders in Category C 1,000 Riyals. Establishments not paying salaries in the official currency within the stipulated timeframe will be fined 300 Riyals.

Also reported in Al Madina on 23 August 2023. Read the full story here.

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News developments

Oman: Central Bank Instructs Banks to Ensure Freelancers Have Separate Work-related Bank Accounts

07/09/202307/09/2023
by Tanya Jain

Oman Daily Observer, 4 September 2023: Oman’s Central Bank has instructed banks to ensure banks have freelancers and those working independently have separate work-related bank accounts.

They have also been instructed to ensure the appropriate credit facilities are provided to these groups and include them within the percentage specified by the Central Bank to finance SMEs. Freelancing and independent work have been defined as individual businesses that enable an individual to provide services or products without having to establish a workplace or obtain a commercial license.

Banks have to help these groups open bank accounts and ensure they carry out the relevant due diligence in terms of money laundering and terrorist financing. They should notify customers who use their personal accounts for commercial purposes about the importance of opening a separate account and providing credit facilities for this category.

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