KSA Archives - Page 41 of 45 - LexisNexis Middle East

Saudi Arabia: Online Registration Process for Employment Contracts Forthcoming

01/12/201811/12/2019
by Benjamin Filaferro

The General Organisation for Social Insurance and the Labour and Social Development Ministry has launched a new initiative which allows employers in the private sector to upload and update electronic version of employment contracts for their Saudi and foreign employees. It is expected the registration process will become mandatory for all employers in Saudi Arabia in the near future. The new initiative is aimed at ensuring employment contracts conform with private sector regulations, ensuring the accuracy of data recorded in agreements and reducing labour disputes between parties. It also allows employees to review their contract online. Unlike some other jurisdictions in the region, employers in Saudi Arabia are not required to use any specific employment contract template as long as the agreement does not contravene the country’s labour regulations. However, in practice, there is no proper mechanism in place for verification of contracts. The fact the initiative is launched by the GOSI may also suggest the authorities are preparing to scrutinise the area of social contributions paid by employers and which are calculated proportionally to the employee’s remuneration.

News developments

Saudi Arabia: Tax Authority Publishes English Version of General VAT Guidelines

24/11/201811/12/2019
by Benjamin Filaferro

Saudi Arabia’s General Authority for Zakat and Tax has published the English version of its general VAT guide, which was originally published in Arabic in October. The guide provides information to taxpayers on a wide variety of VAT obligations in the Kingdom. It covers topics such as VAT registration, charging VAT and issuing VAT invoices, deducting VAT on purchases, filing returns and interacting with the Authority on VAT matters and disputes. It also includes useful reference material, such as a tax invoice example, definitions of technical VAT terms, an illustrative VAT return form and a high-level decision tree for when VAT is expected to be applied. The guide is aimed at a broad audience and offers a good starting point for all taxpayers with respect to understanding VAT compliance obligations.

News developments

Saudi Arabia: Women Can be Arbitrators

17/11/201811/12/2019
by Benjamin Filaferro

The undersecretary of Saudi Arabia’s Justice Ministry and Chairman of the Appeal Court has said there is nothing which prevents women from becoming arbitrators. He was speaking during a seminar on commercial arbitration organised by Riyadh Chamber. He added mediation and arbitration should be encouraged for family disputes and said women can be commercial arbitrators but called for there to be better training of arbitrators in general. He went on to say better arbitration procedures should also be introduced to boost integrity and transparency.

News developments

Saudi Arabia: VAT Registration Deadline for Small and Medium Sized Enterprises Looming

10/11/201811/12/2019
by Benjamin Filaferro

The Saudi Arabian authorities have provided a transitional concession to SMEs who exceed the mandatory threshold of 375,000 Riyals for VAT registration purposes, but make supplies of less than 1,000,000 Riyals in a 12 month period by delaying their need to register for VAT until 1 January 2019. However this extension is rapidly drawing to a close and affected SMEs now need to focus on addressing the requirement to become VAT compliant.

News developments

Saudi Arabia: Recommendation to Divide Government Projects into Small Shares

06/10/201811/12/2019
by Benjamin Filaferro

A Saudi-American joint report has recommended dividing Government projects into small shares to ease the process of giving tenders to small companies. The report also recommended allocating some of the procurement shares of public and private sectors to small and medium enterprises. The report was prepared by the Saudi-American Business Council on the development of small and medium enterprises in partnership with the research company Accountability. It also highlighted regulatory bodies need more indexes and indicators to measure the performance of SMEs to support their development.

News developments

Saudi Arabia: Plain Cigarette Packaging Could be Adopted

16/09/201811/12/2019
by Benjamin Filaferro

According to the World Trade Organisation, Saudi Arabia could follow Australia and other countries and adopt plain cigarette packaging. The Kingdom has apparently notified the Organisation. No date for the introduction was given but when it does it will become the first GCC country to do so.

Regulation

Saudi Arabia: Real Estate Regulation Sector Update

08/09/201811/12/2019
by Benjamin Filaferro

The General Supervisor of the Real Estate Regulation Sector in the Housing Ministry, Mazen Dawood, has confirmed requests to document all tenancy agreements using the Ejar system is aimed at regulating the rental sector rather than for tax purposes. He also confirmed residential units are not subject to VAT and added tenancy agreements concluded after 12 February 2018 should be registered in the system. Contracts which are not registered will be considered to be violating the law.

News developments

Saudi Arabia: Plan to Replace Expatriates with Saudi Nationals in 12 Occupations within the Next 5 Months

02/09/201811/12/2019
by Benjamin Filaferro

Saudi Arabia is planning to replace expatriates with Saudi nationals in 12 occupations within the next five months. The first phase of the latest Saudisation drive will cover salespersons in car and motorcycle shops, clothing stores, children’s clothing, men’s accessories, home and office furniture stores, and sales of household utensils. Implementation will begin on 11 September 2018. A second phase, two months later, will include watch shops, optician shops, electrical appliances and electronic shops, and the third phase, which will start in mid-January 2019, will target salespeople in medical equipment stores, construction materials shops, auto spare parts shops, carpet shops and confectionery stores. The Saudisation of these 12 professions was announced in January when Minister of Labour and Social Development Ali Al Ghafees issued a decree to limit work in them to Saudi men and women from the start of the New Hijri Year. A committee was formed to develop a programme for nationalising the 12 occupations and to coordinate with relevant authorities. Committee members have been drawn from the Ministry of Labour and Social Development, the Human Resources Development Fund (HADAF), and the Social Development Bank.

News developments

Saudi Arabia: Draft Pharmacies Law Under Consideration

05/08/201811/12/2019
by Benjamin Filaferro

A draft pharmacies law is under consideration according to the Director for Legal Affairs at the Saudi Food and Drug Authority. Under the proposed law, there will need to be at least 1000 metres distance in each direction between two pharmacies. Each company will only be allowed to own 30 pharmacies and individual pharmacists will be able to own up to five pharmacies. The online sale of medicines and unauthorised selling of medical and herbal products will also be banned. Licenses issued for medical or herbal products will be valid for five years but will be renewable. There are also provisions on pharmaceutical factories. The technical director of a factory will have to be a full time Saudi pharmacist and have the appropriate qualifications. The Authority will conduct regular inspections and will also review medicine prices every five years. They will destroy any illegal products and issue appropriate penalties. This includes jailing violators for up to 10 years, fining them up to 10 million Riyals and if the person is a non-Saudi, deporting them. The Authority will also be able to revoke licenses and prevent individuals from working in the pharmaceutical industry.

Expired KSA Labour Law

03/08/201811/12/2019
by Benjamin Filaferro

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Know Your Rights: An introduction to KSA Labour Law
18/09/2018
8:30 AM - 12:30 PM

Speakers

LexisNexis, Marsden Int. and DWF in association with Harasani & AlKhamees are pleased to present a unique opportunity to hear from experts in their field on some of the most common pitfalls in KSA Labour Law. Join us for an interactive session with an esteemed panel of experts as we discuss topics such as; Pensions, End (more…)