News developments Archives - Page 42 of 223

Kuwait: Income Tax on Multinational Companies on the Horizon

31/10/202431/10/2024
by Hannah Gutang

Emarat Al Youm, 26 October 2024: The Finance Ministry has accelerated steps to diversify sources of income by replenishing the state’s public finances with non-oil revenues.

The first of which is taxes on the income of local multinational companies, which are expected to be implemented next year after completing the executive formulas, as shown by the Ministry’s activities in external meetings or at the level of internal circulars addressed to companies within the country, a copy of which was obtained by “Al-Siyasa”.

On the international front, the Ministry has revealed that it had passed the first stage of the international assessment to which Kuwait was subjected for the Exchange of Tax Information on Request (EOIR) by the Peer Review Group (PRG), which it described as a “great achievement” to move to the second stage of the assessment.

Simultaneously, the Finance Ministry has issued an executive circular to companies operating in Kuwait regarding the mechanism of “destruction of fixed assets” for companies, considering that the text of Kuwait Decree No. 3/1955, as amended by Kuwait Law No. 2/2008 and its executive regulations, stipulates that capital gains resulting from the disposal of assets must be treated as ordinary commercial profits and subject to tax to prevent any future tax evasion operations.

The circular has included notifying the Ministry of any destruction of assets 30 days before their destruction and the presence of the Ministry’s inspectors during the destruction process, otherwise, it will not be counted, amid expectations that these companies, whether local or foreign, will be subject to the income tax umbrella within 24 months.

Expectations suggest that there will be 30 local multinational companies, while it is likely that the tax revenue from these companies, in addition to the companies listed on the Kuwait Stock Exchange with income exceeding 750 million euros, will be around 405 million dinars.

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Bahrain: Private Sector Employers Must Notify Authorities Before Suspending Workers

31/10/202431/10/2024
by Hannah Gutang

The Daily Tribune, 29 October 2024: Employers in Bahrain’s private sector could soon need to notify authorities before suspending workers, and dismissed employees might get twice as long to file compensation claims, as Parliament debates new rules today.

The government’s draft law, submitted to the Council of Representatives has proposed two main updates to Bahrain’s Labour Law, introducing added checks on employers’ actions and extending protections for workers.

One proposal would require employers to notify authorities before suspending workers for serious misconduct.

Currently, employers have some discretion to temporarily suspend a worker in cases of harm or serious offences, but this adjustment would mean they must inform relevant authorities first, limiting employers’ ability to act independently in such cases.

Another proposed change would extend the timeframe for workers to file a claim after losing their job, increasing it from 30 days to 60.

Supporters say this additional time could help workers prepare stronger cases, though the government cautions that delaying claims might make it harder to gather reliable evidence and could slow the resolution of disputes.

In its memo, the government expresses concerns that these changes may disrupt the balance between worker protection and workplace stability.

Officials argue that requiring employers to notify authorities of suspensions could make it harder to handle misconduct, which might unsettle the work environment.

They also warn that an extended claim period could affect evidence quality, as time may erode details and reduce clarity in witness accounts.

The government also questions the proposed three-month cap on investigations by the Public Prosecution, arguing that it may infringe on judicial independence by imposing a strict timeline on prosecutors.

While recognising Parliament’s aim to strengthen worker rights, the government suggests a balanced approach that keeps workplaces steady.

Today’s debate may bring about changes to Bahrain’s employment laws, with these proposals potentially influencing how workplace disputes are handled in the future.

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ADGM: Enhancing Regulatory Framework for Sustainable Financial Practices

31/10/202431/10/2024
by Hannah Gutang

The ADGM Financial Services Regulatory Authority (FSRA) has published a Consultation Paper aimed at enhancing its regulatory framework to ensure continued alignment with the guidelines outlined by the Basel Committee on Banking Supervision (BCBS).

The key areas of enhancements to the regulatory framework pertain to corporate governance expectations, requirements around notifications to the FSRA, related party transactions, provisioning for credit exposures, stress testing expectations, designation of domestic systemically important banks, and expectations around the management of country risk and transfer risk.

This consultation paper is of interest to all Authorised Persons operating in ADGM or seeking to do so, particularly banks, insurers, and entities authorised to provide credit or manage profit-sharing investment accounts (PSIAu) in ADGM.

The FSRA seeks feedback to establish a regulatory environment built on a solid foundation that supports sustainable financial practices.

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QICDRC Case Digest: January – June 2024 Edition

25/10/202425/10/2024
by Tanya Jain

Welcome to the latest edition of the QICDRC Case Digest, a comprehensive compilation of significant cases adjudicated by the Qatar International Court and Dispute Resolution Centre (QICDRC) during the first half of 2024. This publication serves as a valuable resource for legal professionals, providing insights into the court’s jurisprudence and the evolving legal landscape in Qatar.

The Case Digest covers a diverse range of cases, spanning various areas of law, including insolvency, contract law, arbitration, and employment disputes. Each case summary provides a concise overview of the key issues, legal principles, and the court’s reasoning, offering a practical reference for practitioners and scholars alike.

Whether you are a legal practitioner, academic, or simply interested in the intricacies of the law, this Case Digest promises to be an invaluable resource, providing insights into the court’s jurisprudence and the evolving legal landscape in Qatar.

In this Edition:

Qatar Financial Centre Authority v Horizon Crescent Wealth LLC [2024] QIC (F) 1
Aegis Services LLC v EMobility Certification Services and others [2024] QIC (C) 2
Manan Jain v Devisers Advisory Services LLC [2024] QIC (A) 2
Asma Abdulaziz Al-Saud v Devisers Advisory Services LLC [2024] QIC (A) 3
Stephen Ferris v Sanguine Investment Managers LLC and Christopher John Leach [2024] QIC (E) 1
Aarnout Henri Nicolaes Wennekers v Qatar Free Zones Authority [2024] QIC (A) 7
B v C [2024] QIC (F) 20
Amberberg Limited v Prime Financial Solutions LLC and others [2024] QIC (F) 23
RE Practice Direction No. 1 of 2024 (Litigation Restraint Orders) In the Matters of Amberberg Limited and Mr Rudolfs Veiss [2024] QIC (F) 24

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QICDRC_CaseDigest_English-Arabic_January June 2024 Edition

Qatar: Justice Ministry Launches New Package of Online Services

25/10/202425/10/2024
by Tanya Jain

The Peninsula, 23 October 2024: The Justice Ministry has launched a new electronic package comprising ten service programs and systems that would plainly enhance the performance of a variety of administrative units.

The service, in question, would facilitate the public access to online services easily and optimise the service system the ministry offers to the public and stakeholders outside the ministry. Accordingly, a new system of online state case administration has been launched to streamline the operation of all users, in addition to providing an external gateway that enables government authorities in Qatar to follow-up on their filed cases and apply for submitting lawsuits in accordance with an electronic workflow system that starts from the department and reaches the internal portal of the State Cases Administration.

A new internal portal has also been launched to help the administration automate all internal procedures, according to a set of electronic workflows and interactive monitoring dashboards and linking to the Government Data Exchange portal (GDX), which enables data transfer to the new system.

To enhance the performance in the Legal Affairs Department and upgrade the mechanism for the meetings of the lawyers admission committee, a portal for managing the meetings of this committee has been launched as well.

For the first time this portal will offer new mechanisms for managing the meetings of a variety of sub-committees, as registered members will be able to vote on meeting agenda items and any new matters, especially the meeting minutes electronically in case the meeting cannot be held in person.

Additionally, the portal offers a mechanism for receiving and responding to correspondence from lawyers submitted through the online portal.

Moreover, in order to update the work system at the Real Estate Registration Department that would be reflected positively on the services afforded to the public more expeditiously, the department has launched an online inspection’s system, that manages the inspection processes pertaining to the department.

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UAE: FTA Publishes New Guide on Tax Residency and Tax Residency Certificate

24/10/202424/10/2024
by Hannah Gutang

On 18 October 2024, the UAE Federal Tax Authority (FTA) had published a new guide titled Tax Residency and Tax Residency Certificate – Tax Procedures Guide (TGPTR1).

The guide covers various aspects of tax residency, reviewing the relevant criteria under UAE tax laws and double taxation agreements (DTAs) and offering several examples.

It provides guidance on how a UAE tax resident can obtain a Tax Residency Certificate (TRC) or request the FTA’s stamp on an original TRC form issued by another jurisdiction.

One of the key aspects the guide addresses relates to the Place of Effective Management (POEM) as a criterion for determining UAE corporate tax residency.

The guide analyses the facts and circumstances that need to be considered when deciding if key management and commercial decisions, on the basis of which POEM is determined, are made in the UAE or elsewhere.

It indicates various criteria for identifying persons who make key management and commercial decisions for the company, outlining three tests: the board of directors test, the delegation of authority test, and the shareholder activity test.

The guide offers various examples of when the POEM is in the UAE (e.g., board meetings held virtually when the majority of directors are physically located in the UAE) or not (e.g., when key management and commercial decisions are made in the UAE on an occasional or one-off basis).

The guide also explains who can qualify for the TRC and the procedures to follow to obtain it.

A TRC cannot be obtained for future periods or periods exceeding 12 months.

When a TRC is needed for the current period, the FTA will review the application after three months into the period for juridical persons, as soon as the criteria to be a Tax Resident are met for natural persons, and one day into the period for Government Entities and Government Controlled Entities.

The new guide is essential for those handling corporate tax in the UAE or navigating global tax responsibilities.

Although not legally binding, it will certainly help businesses and individuals optimise their tax strategies.

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Sharjah: Digital Department Creates Platform for Real Estate Services

24/10/202424/10/2024
by Hannah Gutang

The Sharjah Digital Department (SDD) signed a partnership agreement with ADRES Real Estate Services to support and enhance all real estate services in the emirate of Sharjah through a single platform that provides reliable and accurate information about the real estate sector.

The agreement was signed in the presence of officials from the Ruler’s Office, Sharjah Digital Department, and Aldar Properties Group.

This event took place on the sidelines of GITEX 2024, where the signing of the partnership agreement was accompanied by the announcement of the integrated real estate platform “Aqari,” which aims to create a qualitative shift in real estate services in the emirate of Sharjah.

The “Aqari” platform is part of the distinguished Sharjah Digital initiatives, which aim to facilitate access to services through a platform available across multiple channels, including an electronic portal and smartphone applications compatible with both iOS and Android operating systems.

This platform will digitise and simplify real estate transactions, enhance transparency, and support economic growth in the emirate of Sharjah by providing a unified database for all properties.

It will include services such as lease contracts, property ownership, agency management, dispute resolution, as well as facilitating buying, selling, mortgaging, and issuing property certificates.

The platform will also work on developing a comprehensive real estate ecosystem that improves customer experience and provides a holistic view of the real estate market for decision-makers.

The “Aqari” platform is set to launch in December 2024, starting with property leasing services, including the endorsement and renewal of lease contracts, issuance of clearance certificates including investment contracts, as well as services from dispute resolution services.

In the first phase, the focus will be on rental services and positive dispute resolution, with plans to integrate all other real estate services in subsequent phases.

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Saudi Arabia: Capital Market Authority Seeks Public Opinion

24/10/202424/10/2024
by Hannah Gutang

The Capital Market Authority (CMA) has called upon interested parties, stakeholders, and market participants to provide their views on a draft amendment to the Investment Funds Regulations.

The public consultation period will last for 15 calendar days, ending on 03/05/1446H (corresponding to 05/11/2024).

The proposed amendment aims to develop the regulations governing the offering of private and foreign investment funds to retail clients, in an effort to enhance investor protection.

The draft includes a provision that prohibits the offering of units in a private fund to retail clients unless the fund manager collects cash subscriptions from qualified and institutional clients equal to or exceeding the total cash subscriptions intended to be collected from retail clients.

Additionally, the amendment proposes a provision that prohibits the private offering of securities issued by a foreign fund to retail clients unless the fund manager collects cash subscriptions from qualified and institutional clients in the Kingdom equal to or exceeding the total cash subscriptions intended to be collected from retail clients.

In 2021, the CMA allowed retail clients to subscribe to private and foreign funds without specifying their subscription ratio compared to qualified and institutional clients, subject to a maximum subscription of SAR 200,000 (or equivalent) per retail client.

The current proposed amendment aims to set a ratio for retail clients’ cash subscriptions in these funds to enhance their protection and mitigate risks, as private and foreign funds have fewer regulatory requirements compared to public funds.

The CMA has stated that all comments and feedback received from interested parties and stakeholders will be carefully considered and studied before finalising the amendment.

Comments can be submitted through the Unified Electronic Platform for Public and Government Entities Consultation (Istitlaa) at istitlaa.ncc.gov.sa or via email to Laws.Regulations@cma.org.sa.

The draft amendment is available for review at the provided electronic link.

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Qatar: Law Amending Financial Centre Provisions Issued

24/10/202424/10/2024
by Hannah Gutang

Al Sharq, 21 October 2024: The Emir of the country has issued Qatar Law No. 16/2024 amending some provisions of the Qatar Financial Centre Law issued by Qatar Law No. 7/2005.

The law has stated its implementation and publication in the Official Gazette.

The Qatar Financial Centre has stated that the amendment aims to accelerate judicial procedures for resolving disputes efficiently and with high quality, ensuring the rights of litigants and achieving swift justice.

It also seeks to reduce the litigation period and enhance investor confidence.

This follows the amendments to the Qatar Financial Centre Law, issued by QFC Law No. 7/2005, and Qatar Law No. 15/2021, which amended some provisions of Qatar Law No. 34/2005 regarding Free Zones.

These changes extended the judicial jurisdiction of the Qatar International Court and the Regulatory Court to include cases occurring in the Free Zones of the State and to consider appeals against decisions issued by the Free Zones Authority.

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Oman: Biometrics Law Regulations Issued

24/10/202424/10/2024
by Hannah Gutang

The Arabian Stories, 20 October 2024: Regulations on Oman Sultani Decree No. 21/2024 (the Biometrics Law) have been issued.

These regulations aim to provide a structured framework for the collection, analysis, and preservation of biometric data, including fingerprint and genetic information.

The regulation defines key terms related to the Biometrics Law and emphasise that the competent director is responsible for the overall supervision of the biometric database, ensuring that data is collected and updated according to legal provisions.

Article 3 (Chapter Two) states that it is not permissible to modify any of the database data, unless an error is proven in the recorded data, requiring written permission from the director and a detailed report justifying any changes.

On collection and analysis of biological samples, the regulation states that employees who are designated to carry out biometric work will collect biological reference samples, including saliva and blood, in line with scientific methods. Individuals can also voluntarily submit samples for genetic fingerprinting, which will be recorded in the database for legal purposes.

DNA analysis is permitted only in specific cases for example where there are judicial orders or where unidentified samples have been found at crime scenes. The regulations also mandate strict preservation protocols for biological samples, ensuring confidentiality and appropriate storage conditions.

Once the legally stipulated preservation period has elapsed, the competent administration must destroy the biological samples using secure methods.

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