Abu Dhabi’s Global Market has launched a public consultation on proposed revisions to the Market’s regime for tackling money laundering, terrorist financing and proliferation and the financing of unlawful organisations. The consultation ends on 12 March 2019.
Oman Official Gazette, issue 1280 has included Executive Regulations clarifying provisions in the Income Tax Law. The new Regulations are found in Oman Ministerial Decision No. 14/2019 and the amendments include changes on withholding tax, deductibility of expenses, tax exemptions, administrative procedures and the tax ability of enterprises. They also detail new forms for providing or updating taxpayer information and procedures for obtaining a tax card, electronic filing and onsite inspection. The changes generally apply from 11 February 2019, although some have retroactive application to tax years beginning on or after 1 January 2018. Taxpayers should check these amendments for implications they may have on their tax returns.
Oman’s tax authorities are also expected to begin issuing Tax Cards for all corporate entities, including LLCs, SAOCs, SAOGs, branches of foreign companies and permanent establishments operating in the Sultanate shortly. The Cards are mandatory for companies following amendments to the Income Tax Law which were issued last year. The cards will be either chip-based or take the form of an electronic document with a Unique Identification Number. Card applications will have to be submitted on the Tax Department portal once the forms are available online.
Abu Dhabi’s Ruler has issued two new Laws, including Abu Dhabi Law No. 1/2019 establishing an Investment Office in the Emirate. The Office will be responsible for executing a comprehensive strategy for increasing Foreign Direct Investment to the Emirate. In addition, they will be able to set up a PPP Centre of Excellence. He also issued Abu Dhabi Law No. 2/2019 regulating partnerships between the public and private sectors.
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.
Saudi Arabia has launched a new anti-corruption office to monitor state spending as part of its ongoing anti-corruption fight. The Financial Reporting Office will be part of the state General Auditing Bureau. It follows the end of an anti-corruption drive which raised more than $100 billion and saw tens of people arrested.
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.
According to local newspaper reports, Saudi Arabia has promulgated a new law to tackle terrorism and terrorist funding. The new law which is now in effect aims to protect the Kingdom from terrorist attacks and maintain national security. It also clamps down on the use of charities and non-profit institutions as facades to cover the funding of terrorist activities. Under the Law, prosecutors will be able to request records or documents from suspicious institutions and compel charities to implement provisions of the law.
The UAE’s Federal National Council is considering a draft space objects law. The aim is regulate this sector more closely. Those who violate the law will be jailed for up to two years and fined 10 million AED. Objects will not be able to launch objects higher than 100km over sea level without the approval of the UAE’s Space Agency. No one will be able to own space objects like satellites or rockets. It will also help the Space Agency organise its activities and issuing permits including with regard to finding meteorites and any kind of space object which falls into the country. In addition, it seeks to impose a ban on selling, buying and mining meteorites anywhere in the country.
Bahrain’s Central Bank has launched a consultation on draft Digital Financial Advice directives. The consultation ends on 20 February 2019. The draft directives state the rights and responsibilities of licensees who want to use digital financial advice tools. They also stipulate the prudential and conduct requirements associated with this digital advice to safeguard client interests. In addition, the draft directives will allow FinTech firms who focus solely on robo-advice to get a license from the Bank. If approved, they will enable licensees to use technology to offer financial advice to their clients.
Saudi Arabia’s Labour and Social Development Minister has issued a Decision approving the establishment of a coordination committee for labour committee. It will be called the national committee for labour committees in Saudi Arabia. The chairmen of labour committees will be members of this committee which will be responsible for representing the Kingdom internationally as well as conducting the necessary studies to activate its role, introduce itself to the private sector and draft the regulatory charter for its elections and meetings systems.
