Weekly Spotlight Archives - Page 11 of 19

Weekly Spotlight: Companies Not Compliant with the Kuwaitisation Ratios to be Subject to Extra Fees

10/02/201911/12/2019
by Benjamin Filaferro

This week the spotlight is on employment developments in Kuwait. With effect from June 2019, companies in the private sector who don’t comply with their prescribed Kuwaitisation ratios will be subject to an annual 300 Dinar fee for each work permit issued to a foreign national. The move was announced by the General Authority for Manpower and follows the issuing of a Ministerial Decision in late 2018 which determined the Kuwaitisation levels for companies in various business sectors and the general trend in Kuwait for encouraging the hiring of local employees in the private sector. Further details of the law are expected to be announced in the coming months.

Elsewhere, according to local newspaper reports, the Government has issued a Decree which from 1 April 2019 will reduce the number of expatriates in all Government departments. Following a Ministerial Decision there will be no exceptions to this Decree. Both legislative moves come as the Government looks to raise Kuwaitisation in Government jobs to 90% by the end of the next fiscal year.

Weekly Spotlight: New Qatari Income Tax Law Approved

03/02/201911/12/2019
by Benjamin Filaferro

This week the spotlight is on tax developments in Qatar, where the country’s Finance Ministry has recently announced the issuing of a new Income Tax Law, Qatar Law No. 24/2018, which replaces the current Income Tax Law, Qatar Law No. 21/2009. Under the new law, the corporate income tax rate remains unchanged at 10%.

The key changes include income connected with agreements relating to petrochemical industries will be subject to corporate income tax at 35% and the penalties for late registration, filing tax returns and paying taxes have been increased significantly. In addition, the 7% withholding tax rate has been removed and a single withholding tax rate of 5% now applies to payments made by Qatari residents to non-residents with no permanent establishment in Qatar in respect of royalties, interest, commissions and services performed in Qatar by non-residents.

Weekly Spotlight: Long-term Visa Application Launch Announced in the UAE

26/01/201911/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in the UAE, where the authorities will start officially accepting long-term visa applications from 3 February this year. The launch date is specified in a new Decision which also states two committees will be established to evaluate visa candidates. One will evaluate investor visa applicants and the other entrepreneur, scientist and those with specialist talent visa applicants. The applications will be assessed in line with the criteria previously laid out in legislation.

As part of this significant legislative development, Lexis Middle East has added the Arabic and full text English versions of UAE Federal Cabinet Decision No. 56/2018 to the legislation part of our service. We have also added a key analysis piece from Fragomen Middle East on this development as part of our Middle East News Analysis coverage.

Weekly Spotlight: Introduction of a New License For Visiting Doctors in Dubai

21/01/201911/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Dubai, where the Healthcare City Authority has announced it is introducing a new license for visiting doctors which will be valid for two years. It will allow international physicians, dentists and Complementary and Alternative Medicine (CAM) practitioners to enter the UAE and work in up to three clinical facilities in the City.

The license is aimed at attracting international medical talent to Dubai and is being introduced ahead of Arab Health, the largest exhibition for healthcare and trade professionals in the Middle East. Visiting doctors can currently only practice temporarily in the free zone through a license from the clinical facilities, which is valid for a three-month-period and can be extended for three months. With the new license, physicians will be able to work for two years, after they have obtained a Letter of Acceptance which is a document confirming their eligibility to work as physicians and enter into a contract with a clinical facility. They will also be able to sponsor their families during the license’s validity period. They can apply for a license from 20 January and a special DArab Health license fee rate will be offered from then until the last day of the exhibition on 31 January.

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.

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.

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.

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.

Weekly Spotlight: Licensing and Promoting Investment Funds Agreement Reached in the UAE Between Multiple Regulators

02/12/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in the UAE, where the country’s Securities and Commodities Authority, Dubai’s Financial Services Authority and Abu Dhabi Global Market’s Financial Services Regulatory Authority have announced they have finalised an agreement on the licensing of domestic funds by each authority for promotion across the UAE. The regulators have agreed to establish common rules to implement the agreement which amongst other things introduces passporting ‘mutual recognition’ for promoting and supervising investment funds and encourages foreign firms licensed in financial free zones in other countries to operate in the UAE.

In addition, the regulators have agreed a common legislative framework in their respective jurisdictions will be introduced to enable them to facilitate regulatory coordination between them in licensing domestic funds once the legislation has been approved.

They have also confirmed funds, licensed in line with the agreement and the licensing regulations, may be promoted in or from the financial free zones in the UAE, in line with the provisions of the agreement and the licensing regulations. Under the agreement, a notification and registration facility will be established by each regulator to facilitate the promotion and sale of domestic funds, set up in the UAE, in either the Dubai International Financial Centre or Abu Dhabi Global Market, to potential investors based anywhere in the UAE and under a single licence. The agreement was signed by the Securities and Commodities Authority’s CEO, the Dubai Financial Services Authority’s Chief Executive and Abu Dhabi Global Market’s Financial Services Regulatory Authority’s CEO.

Weekly spotlight: Amendments to Tender and Auction Law in Qatar to be Reviewed

25/11/201811/12/2019
by Benjamin Filaferro

This week the spotlight is on legal and regulatory developments in Qatar, where the Shoura Council has referred Qatar Decree-Law No. 18/2018 amending the 2015 Tender and Auction Law, Qatar Law No. 24/2015 to the Finance and Economic Affairs Committee to review and report back to the Council on.

The law details the classification process for those transacting with the Government, involving the issuing of certificates by the Government Procurement Regulatory Department (GPRD) at the Finance Ministry. Foreign and local companies are classified as contractors, service providers or suppliers. Tenderers applying to be classified are required to submit details on personnel, quality assurance, security and other information. The Council’s President had invited the committees to meet to discuss some things during the holiday, but a formal decision of memorandum cannot be issued to the Government until a new Council session has opened.

Elsewhere, the Council has referred a draft Media City Law to the Cultural Affairs and Information Committee to consider and report back to the Council on. The draft law would give the Media City legal personality and an independent budget. It would manage and develop media activities, attract international media, digital media and technology companies and media research and training institutions. It would provide services to licensed companies operating there, including granting licenses for television and radio broadcasting and for publishing and distributing newspapers, magazines and books.