The Manager of Saudi Arabia’s VAT Project, Hammoud Alharby has confirmed companies suffering financial losses will not be exempted from VAT and sectors which generate more than 375,000 Riyals will have to register for the tax. Registration will be optional for sectors generating up to 185,000 Riyals. Alharby confirmed the draft VAT law will be issued in the next fortnight. Its provisions will come into force in January 2018. The penalties are expected to include paying half of the value of the tax due in addition to the tax payment if the business fails to register or if a mistake is made in the tax return.
Egypt's Parliament has approved the country’s new Investment Law. It will now be referred to the President for further consideration. Under the law, there will be tax exemptions of up to 50% for investors in the country's poorest regions and other incentives in sectors like electricity and renewable energy. It will also provide a service centre for investors which will be aimed at being a one-stop shop. Authorities will have 60 days to provide investors with all of the necessary authorisations.
The Accounting and Auditing Organisation for Islamic Financial Institutions has introduced new Islamic Finance guidelines. The new guidelines cover competitions and trophies in Islamic Sharia, including their modern applications, investment, gold transactions-regulating criteria and re-purchase standards. The aim is to help scholars decide whether financial activities and products conform with Sharia law.
Qatar’s Financial Centre has announced it has introduced legislation to allow Investment Clubs and Foundations to be set-up. Foundations will be established under the QFC Foundation Regulations and Rules and will have their own legal personality. Their structure will be flexible and will be able to be used for succession planning, asset protection and employee share plans. Their constitution needs to be provided to the Financial Centre’s Authority but will remain a confidential document. Investment Clubs will be companies limited by shares and will be incorporated under the QFC Investment Clubs Regulations and Rules. To ensure they do not have to be authorised, Investment Clubs should not be carried on ‘by way of business’. They will be able to pool funds by up to 15 members and investing in a portfolio of assets and securities. In certain circumstances, a member will be able to exit by selling their shares back to the Investment Club. The Regulations also provide for the Investment Club’s assets to be valued and for disputes over valuations to be resolved. Both entities will be able to be 100% foreign owned and will be able to trade in the currency of their choice. They may also benefit from unlimited repatriation of profits.
Sources at Kuwait’s Public Authority of Manpower have announced employees who entered the country with an employment contract for the public sector then transferred to work with the private sector then went back to the public sector can transfer back to the private sector without the intervention of the Supreme Committee. The sources added the implementation of Administrative Decisions cannot be backdated. The transfer requests which are related to employees who have been moving in and out of the public sectors before the relevant Administrative Decision was issued should not be subject to the prohibition.
Saudi Arabia’s Council of Ministers has approved new power regulations to expand the Saudi Water and Electricity Company’s (WEC) remit. The amendments mean WEC, as the Kingdom’s main water buyer, will be able to purchase desalinated, purified, treated and untreated water. The aim is boost water and electricity distribution in the country.
Lebanon’s Environment Minister, has announced new hunting regulations are on the way. Hunting any animal was banned in the country in 1994. New legislation was agreed in 2004 but has never been enforced. Prospective hunters will have to pass physical and mental health exams. In addition they will have to pass reading and practical exams on hunting laws, before receiving a license. They will have to be able to identify bird species which can be hunted as well as annual hunting quotas. Those who cannot read or write will be able to take an oral exam. Hunting will also now be limited to certain areas and hunting in nature reserves will be banned. This year’s official hunting season will run from September 2017 to January 2018.
Qatar’s Cabinet has approved a draft VAT Law and its Executive Regulations. The Cabinet also approved a draft income tax law and its draft executive regulation. If approved further, the amendments will replace Qatar Law No. 21/2009 and Qatar Law No. 17/2014. In addition, a draft Ministerial Decision issuing the Executive Regulations to the selective tax law were approved. It include provisions on tax entitlement, declarations of loss or damage of selective goods, inspection of damaged goods, registration, tax declaration, rules of payment of tax for locally produced goods, maintenance of accounting systems, accounting records and control and inspection rules.
The Deputy Prime Minister and Interior Minister, Sheikh Saif bin Zayed Al Nahyan has announced a new Ministerial Decision amending the Executive Regulations to the Federal Traffic Law has been published in the Official Gazette. Under the new rules, driving licences issued for the first time will be valid for two years, while renewed licences will be valid for 10 years for citizens and five years for expatriates. Expatriates will also need to have a valid residence permit to renew licences. The new rules also cover registration and licensing rules, stopping distance rules, driving in residential areas, who can sit in the front of a car and traffic routes for buses.
The UAE’s Cabinet is considering a new Public Health Law, which if approved will upgrade occupational safety management systems, especially for workplace injuries. It will also ensure good health and safety standards are laid out for all employees. Article 22 of the Law focuses on health and safety, including preventive treatments to improve employees’ health.
