LexisNexis Middle East

Saudi Arabia: New Property Deal Tax Introduced

02/10/202002/10/2020
by Benjamin Filaferro

Saudi Arabia’s’ King has approved the introduction of a new property deal tax. They issued a Royal Order to this effect and the tax will be levied at 5%. The Government will pay the costs of the new Real Estate Transaction Tax up to one million Riyals for Saudi citizens buying their first home. Property deals will also be exempt from VAT according to the Royal Order. It is part of the Kingdom’s response to the adverse economic effects of Coronavirus but is also aimed at encouraging Saudi citizens to own their own homes and supporting the residential and commercial property sector.

News developments

Oman:Non-Omani Lawyers Cannot Make Court Pleadings From 31 December

02/10/202002/10/2020
by Benjamin Filaferro

Oman’s Justice and Legal Affairs Ministry has announced non-Omani lawyers will not be able to make court pleadings from 31 December. Omani advocacy offices, civil law firms and the relevant authorities will be responsible for complying. It will apply to non-Omani lawyers of all seniority.

News developments

Lebanon: Amended Illicit Enrichment Law Approved

02/10/202002/10/2020
by Benjamin Filaferro

Lebanon’s House of Representatives has approved an amended Illicit Enrichment Law. They also approved a draft law to protect areas affected by the Beirut Port explosion and pay compensation for damaged buildings. Finally, they approved a law to amend an article of the Criminal Procedures Law to enshrine the rights of individuals accused of crimes to seek legal assistance during initial investigations.

News developments

Kuwait: Draft Bankruptcy Law Approved

02/10/202002/10/2020
by Benjamin Filaferro

Kuwait’s National Assembly has approved the draft bankruptcy law. It is aimed at reorganising the legal framework for bankruptcy provisions and the rules for debt restructuring. The first chapter dealt with definitions of all the terms contained in the law and the second chapter singles out the general provisions explaining the scope of its application It also contains provisions governing requests for preventive settlement, restructuring, or bankruptcy for debts owed to Government companies, insurance and companies regulated by the Capital Markets Authority. There are also provisions on requests for preventive settlement, restructuring and bankruptcy, as well as how the mechanisms for appointing the trustee, the controller and the inspector will be regulated and the duties and powers of each of them in the event the bankruptcy judge accepts the opening of the restructuring procedures or the declaration of bankruptcy in addition to organising frames and announcements related to the claims, requests and appeals through an electronic data room.

News developments

Bahrain:Amendment of Decree Law No. 21/2001 on the Kingdom’s Commercial Companies

02/10/202002/10/2020
by Benjamin Filaferro

Bahrain’s King Hamad has approved a Law amending the Kingdom’s Commercial Companies Law. Bahrain Decree-Law No. 28/2020 will amend Bahrain Decree-Law No. 21/2001. The Prime Minister and the relevant ministers will be responsible for implementing the Law. It has been published in the Official Gazette and will come into force the day after it is issued.

News developments

UAE:Abu Dhabi’s Khalifa Fund for Enterprise on Development Announced the Launch of an SME Rating Classification

02/10/202002/10/2020
by Benjamin Filaferro

Abu Dhabi’s Khalifa Fund for Enterprise on Development has announced it is going to launch an SME rating classification. It will provide SMEs with an overview of their operations and performance and the rating will help them identify their strengths and weaknesses. The aim is to help them grow and boost their operations. It will launch as a web-based solution and will be used by Khalifa Fund counsellors when assessing businesses who are making applications to the Fund.

Weekly Spotlight

Qatar:Representative Office Rules 2020 QFCRA Rules 2020-5

02/10/202002/10/2020
by Benjamin Filaferro

Qatar Financial Centre’s Regulatory Authority has issued the Representative Office Rules 2020. They came into force on 1 October 2020. The new Rules introduce a Representative Office framework which allows financial services firms to carry out a limited range of activities in respect of services or products offered by its head office or corporate group. The activities of a Representative Office may include providing information, carrying out market research, assessing business trends and opportunities for the head office, acting as a channel of communication to the head office and generic marketing. The new Rules are aimed at being proportionate and reflecting the narrower range of activities and services which can be undertaken by Representative Offices.
The Authority also issued the Miscellaneous Amendments Rules 2020. They come into force on 15 October 2020. The amendments include changes to the General Rules 2006 relating to the regulation of captive finance and providing leases. In addition they include changes to GENE clarifying the application of the ‘late fees’ framework to late submissions of regulatory reports for Designated Financial Businesses and Professions and reduce the number of business days to elapse before late fees are payable by all authorised firms and Designated Financial Businesses and Professions. They also include changes to the Collective Investment Schemes Rules 2010 regarding Real Estate Investment Trusts or REITs.

News developments

UAE:Federal Law No. 8/1980 Concerning The Regulation Of Women Labour

25/09/202025/09/2020
by Benjamin Filaferro

Following the issuing of an equal wages Decree by the UAE’s President, under Article 32 of Federal Law No. 8/1980, it came into force on 25 September. The amendment to Federal Law No. 8/1980 was contained in Federal Decree-Law No. 6/2020. It states the new Article 32 will say ‘Female employees shall receive wages equal to that of Males if they perform the same work or another of equal value’.

News developments

Saudi Arabia: Public Consultation on Insurance Policies for Deaths and Injuries Abroad Launched

25/09/202025/09/2020
by Benjamin Filaferro

Saudi Arabia’s Monetary Authority has launched a public consultation on insurance policies for those who are involved in car accidents abroad and die or are injured. The proposal is for insurance companies to offer additional coverage including covering deaths, injuries and medical costs for insured people or drivers in accidents which happen outside the Kingdom. The aim of the law is to regulate the contractual relationship between an insured individual and an insurance company.

News developments

Oman: Dual Tax Returns System Abolished

25/09/202025/09/2020
by Benjamin Filaferro

Following the issuing of Oman Sultani Decree No. 118/2020 amending Oman Sultani Decree No. 28/2009, the Sultanate’s Tax Authority has announced the dual tax return system has been abolished. It means taxpayers only have to file one tax return within four months of the end of the relevant tax year from the 1 January 2020. Previously, taxpayers had to file a provisional return of income within three months and an annual return of income within six months from the end of the accounting year. Despite the change being welcomed, tax professionals have advised taxpayers to be aware audits of financial statements will need to be carried out well in advance of the tax return filing deadline. Oman Sultani Decree No. 118/2020 was published in the Official Gazette on 20 September 2020. It also includes provisions to facilitate the Automatic Exchange of Information (AEOI) between tax jurisdictions, the introduction of tax residency provisions and changes in the proceedings for appeals.