

Kuwait’s Cabinet has approved the draft laws regarding the GCC unified selective excise tax and VAT. The drafts have been referred to the National Assembly for their consideration. The selective tax will be levied at 100% on tobacco and energy drinks and 50% on soft drinks. The draft bill includes a fine of up to 4000 Dinars for taxpayers who fail to comply with the tax rules. Those who report people who don’t comply will be rewarded. VAT will be introduced across the GCC on 1 January 2018 at 5%.
There is still uncertainty surrounding the expected implementation of the new VAT regime. Lexis Middle East Law cuts through the ambiguity with a wide range of practical commentary from leading international and local law firms. Here is a selection of some of the articles that have been recently uploaded:
How VAT legislation will change the business set up models in the UAE
BSA Ahmad Bin Hezeem & Associates
http://www.lexismiddleeast.com/doc/2455752_2455753?highlight=vat
VAT Law-Analysis of VAT implications on corporate group structures
Hadef & Partners
http://www.lexismiddleeast.com/doc/2450808_2450811?highlight=vat
How will VAT impact the UAE Real Estate sector?
Hadef & Partners
http://www.lexismiddleeast.com/doc/2450792_2450793?highlight=vat
VAT–Is your business prepared?
Clyde & Co
http://www.lexismiddleeast.com/doc/2442196_2442198?highlight=vat
VAT and Commercial Contracts
Al Tamimi
http://www.lexismiddleeast.com/doc/4C4D454C415F323031365F53657074656D6265725F3234?highlight=vat
Lexis Middle East Law provides the largest online collection in the world of articles and commentaries on Middle East law, with contributions from hundreds of regional legal experts.
Qatar’s Cabinet has approved a draft law allowing some expatriates to obtain permanent residency. It is the first move of its kind in the GCC. Children of Qatari women married to non-Qataris, as well as expatriates who provide outstanding services to the country will be allowed to obtain permanent residency. If approved, the Interior Minister will be able to grant a permanent residency ID to a non-Qatari if they meet the conditions in the law.
Bahrain’s King Hamad bin Isa Al Khalifa has ratified Bahrain Law No 27/2017 to regulate the Kingdom’s real estate sector. The Real Estate Sector Regulatory Law annuls Bahrain Decree-Law No. 21/1976 which regulates the vocation of property dealership. The provisions which regulate the ownership of apartments and tiers under Articles 814-843 of the Civil Law (Bahrain Decree-Law No. 19/2001). Finally Bahrain Law No. 28/2014 regarding property development has been annulled. The law supersedes any provisions which contradict the provisions of the associated law. The Prime Minister and each of the respective ministers will implement the law which comes into effect on the first day after six months from its publication date in the Official Gazette. The provisions of the first chapter of the law come into effect one month after its publication.
The UAE’s Cabinet has approved new draft child car seat regulations. The approval follows a suggestion from the Emirates Authority for Standardisation and Metrology. It aims to adhere to the highest standards and reduce accidents involving children. Drivers will have to provide child car seats for children under four.
Abu Dhabi’s Global Market has announced it is establishing an Arbitration Centre. It is expected to start operations in early 2018. The decision coincides with the decision of the International Commerce Chamber to open the first representative office in the Middle East in the Global Market by January 2018. The Centre will also offer training in settling disputes.
Abu Dhabi’s Economic Development Department has announced the enforcement of amendments to its penalties regime in line with Abu Dhabi Executive Council Decision No. 47/2017 on violations regarding businesses or establishments licenced for economic activities in line with Article 6 of Abu Dhabi Law No. 2/2009. The amendments follow repeated violations by establishments licenced for economic activities in the Emirate. The Department has called on all establishments to go through the amendments and comply with the relevant regulations to avoid penalties ranging from formal warnings and fines depending on the nature of the violation.
Qatar’s Emir, Sheikh Tamim bin Hamad al-Thani has issued a Decree-Law amending the 2004 Law on combating terrorism. It includes definitions of terrorists, crimes and terrorist acts and entities. It also contains provisions on the freezing of funds and terrorist financing. Two national lists of individuals and terrorist entities will be created. The procedures for who gets listed have also been laid out. In addition, relevant parties will be able to challenge a decision to list at the Court of Cassation.
Dubai’s Crown Prince and Executive Council Chairman, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has issued a Decision to regulate the rental of buses, trucks, recreational vehicles, motorcycles and bicycles in the Emirate. It also aims to regulate the transporting of passengers, goods, valuables, packages, food and furniture by specialist companies. It applies to all relevant entities in Dubai, including those based in special development zones, free zones and the Dubai International Financial Centre. The Decision will be published in the Official Gazette and will come into effect 60 days after it has been published.
The UAE’s Finance Ministry has confirmed certain financial services, residential properties, bare land and local passenger transport will be exempt from VAT. The UAE is set to implement 5% VAT on 1 January 2018. Supplies, including sales or leases, of commercial properties will be taxable at the standard VAT rate of 5% percent but supplies of residential properties will generally be exempt from VAT. In addition, the first supply of newly-constructed residential properties within 3 years of their completion will be zero-rated for VAT purposes. VAT will also be charged at 0% for exports of goods and services outside the GCC and international transportation and related supplies. Supplies of certain sea, air and land transportation (like aircrafts and ships), certain investment grade precious metals (like gold or silver which reach 99% purity), supply of certain education services and supply of relevant goods and services and supply of certain healthcare services and supply of relevant goods and services will be taxed at 0%.