Newsletter Archives - Page 212 of 244 - LexisNexis Middle East

Weekly Spotlight: Saudi Arabia Has Issued New Zakat Regulations

24/03/201911/12/2019
by Benjamin Filaferro

Saudi Arabia’s General Authority for Zakat and Tax has issued the updated Zakat Regulations in Arabic.

The Regulations are subject to certain exceptions, effective for financial years beginning on or after 1 January 2019 and supersede the provisions of all the previous Regulations and any conflicting circulars, instructions and Decisions.

The key changes include, amongst other things, new rules on how finance activities will be treated for Zakat purposes and a change to the Zakat rate applicable to the Zakat base. A permanent establishment of a non-resident Saudi or GCC national will be treated as a Zakat payer subject to a certain condition being met.

Saudi Arabia: Transfer Pricing Guidelines Published

24/03/201911/12/2019
by Benjamin Filaferro

Saudi Arabia’s General Authority for Zakat and Tax has issued guidelines on transfer pricing in Arabic and English. They cover the basic concept of transfer pricing and arm’s length principle. The Authority provides specific guidance on financial transactions, intangibles and business restructuring. The guidelines also provide guidance on selection of transfer pricing method, transfer pricing documentation, valuation, transfer pricing adjustments and details on audits.

Kuwait: New Decree Establishing Real Estate Broker’s Book

23/03/201911/12/2019
by Benjamin Filaferro

Kuwait’s Commerce and Industry Minister has issued a Decree establishing a Real Estate Broker’s Book. The Book will be online and is aimed at finalising the regulation of the country’s real estate sector and eliminate market manipulations. Under the Decree, the Commerce and Industry and Justice Ministries, Kuwait Municipality and the Public Authority for Civil Information will establish a database with details of any property which is being traded in terms of disputes and ownership status. Those who have obtained the relevant e-permits from the Public Authority for Civil Information will then be able to register on the e-booking system.

UAE: New Measures to Increase the Regulation of the Pharmaceutical Industry

23/03/201911/12/2019
by Benjamin Filaferro

The government of the UAE is set to pass new measures to increase the regulation of the pharmaceutical industry. Under the legislation, currently under review, those caught selling counterfeit medicine with be punished with up to five years in prison and a 1 million AED fine. There will also be prison sentences for up to a year in jail and a 500,000 AED for those selling poisonous substances. In addition, pharmacies caught overcharging for products could be fined up to 100,000 AED, with fines doubling for repeat offenders. Existing UAE legislation for in this area pharma industry dates back to 1983. The Federal National Council has said the draft laws would shortly be referred to the Cabinet. The FNC has also added pharmacists found to have faked a licences would be fined up to 200,000 AED and sentenced to two years in jail.

Weekly Spotlight: Oman’s Capital Market Authority Announces the New Companies Law

17/03/201911/12/2019
by Benjamin Filaferro

Oman’s Capital Market Authority has announced the new Companies Law. Oman Sultani Decree No. 18/2019 will be enforced from 1 April 2019 and Oman Law No. 4/1974 will be repealed. The Authority also announced they will be responsible for enforcing all its provisions, except the registration of listed companies. The new Law was issued through Oman Sultani Decree No. 18/2019. Under the Law, a holding company will take the form of a joint stock company unlike previously where a holding company could be a limited liability or joint stock company. A new Article on establishing professional firms has also been introduced and special rules for how they are regulated will be issued in due course as will the Implementing Regulations to the Law.

Elsewhere, Oman’s Sultan has issued a Decree approving the Selective Tax Law which will come into force 90 days after the issuing of the Sultani Decree. It will see tobacco product, alcohol, energy drink and pork product prices increase 100% and carbonated drink prices by 50%. Oman Sultani Decree No. 23/2019 will come into force in June 2019 and the Sultanate is the fifth GCC country to introduce it. Bahrain, Qatar, Saudi Arabia and the UAE have already introduced the tax.

Bahrain: Amendments to the Private Health Establishments Law

16/03/201911/12/2019
by Benjamin Filaferro

Bahrain’s King has approved Bahrain Law No. 1/2019 amending Article 14 of Bahrain Decree-Law No. 21/2015 on private health establishments. Article 14A(2) of Bahrain Law No. 21/2015 now states, ‘Priority must be given in a private health establishment to recruitment of Bahraini physicians, technicians and nursing staff who are in possession of the requisite qualification and experience, with the exception of positions that require unavailable rare specialised expertise’. Private health establishments have to comply with this law once their contracts with non-Bahraini physicians, technicians and nursing staff have expired. The Law has been published in the Official Gazette and came into effect on its publication date.

UAE: New Insurance Dispute Committees to be Established

16/03/201911/12/2019
by Benjamin Filaferro

The UAE’s Insurance Authority has announced it has finalised its consultations with the Justice Ministry and local courts to establish committees to settle insurance disputes and stipulate their workflows. They added the consultations cover all regulatory issues and proposals including the power of their decisions, appeals and execution. The Authority confirmed the expected amendments establishing the Authority do not provide for judges being chairmen of these committees but this proposal is still being considered.

Weekly Spotlight: The New DIFC Employment Law Introducing Extensive Changes to the Current Law Expected to be Enacted Shortly

10/03/201911/12/2019
by Benjamin Filaferro

A new employment law for the DIFC is expected to be enacted shortly, following a consultation in early 2018 and subsequent amendments made during the course of last year. The DIFC is a financial free zone in Dubai, UAE and is home to many leading financial institutions, law firms and other professional services companies. The DIFC is an independent legal system with its own laws and courts. The current employment law for DIFC companies is DIFC Law No. 4/2005, as amended by DIFC Law No. 3/2012 (DIFC Employment Law) which will be replaced in its entirety by the new law once it is enacted.

The proposed new law introduces quite extensive changes to the DIFC Employment Law. For many of the changes, the intention is to strike a fairer balance between the respective rights of employers and employees than under the current DIFC Employment Law, for example in relation to employee leave entitlements and termination benefits. Other changes are reflective of recent developments and trends in working practices, for example part-time employment and secondment arrangements which are not expressly provided for under the DIFC Employment Law. Certain changes are intended to rectify unintended consequences of the current wording of the DIFC Employment Law, whereas others are being introduced from a compliance and enforcement perspective, including the right for the DIFC Authority to inspect DIFC companies’ premises and records and to impose monetary fines (up to $10,000) for non-compliance.

One of the most important developments is the proposed expansion of the anti-discrimination provisions of the DIFC Employment Law. In particular, under the proposed new law there will be additional protected characteristics and the introduction of various remedies including court declarations, recommendations and most importantly, significant monetary compensation for an employee who has suffered unlawful discrimination. In light of the extensive changes under the proposed new law, DIFC employers should prepare to have their employment contract templates and HR policies reviewed and updated to ensure compliance with the new law. Consideration must also be given to how existing employees’ contracts and benefits will be dealt with in light of the new developments. More broadly, DIFC employers will need to carefully review their policies, procedures and general approach when dealing with HR and employment matters generally (from recruitment and hiring through to the termination of employment) to ensure the company’s legal risks are appropriately managed, particularly in light of the increased scope (and repercussions) for employee discrimination claims under the new law.

Amendments to the UAE Civil Procedure Code Approved

10/03/201911/12/2019
by Benjamin Filaferro

The UAE’s Cabinet has approved a Decision amending the country’s 1992 Civil Procedure Code in line with the UAE Vision 2021 and UAE Centennial Strategy 2071. They are aimed at strengthening and modernising judicial procedures to ensure they can be applied more easily. The amendments include unifying procedures in all civil courts across the country along with the necessary flexibility to implement judicial decisions in line with the requirements of each judicial body. They were introduced following cooperation between the Federal Justice Ministry, the Supreme Committee of Dubai Legislation, the Judicial Councils and the Military Court. The Abu Dhabi Judicial Department, Dubai Courts, Ras al Khaimah Courts and DIFC Courts will have 100 days to reflect the amendments in their procedures.

Kuwait: Health Insurance to Become Mandatory for Tourists

09/03/201911/12/2019
by Benjamin Filaferro

Kuwait’s National Assembly has approved a draft law which will mean tourists visiting the country will have to have a health insurance policy which covers the duration of their stay there. The aim is to ensure tourists do not receive medical treatment in the country. A visit visa cannot be granted until the Interior Ministry has seen the health insurance policy documentation. The amount of coverage has not been specified in the law, but this is likely to be clarified when the Ministry prepares the bylaws to implement the law which is expected within the next two to three months.