LexisNexis Middle East

Saudi Arabia’s General Authority for Zakat and Tax would allow VAT to be paid in instalments over 12 months

25/09/201711/12/2019
by Benjamin Filaferro

According to local newspaper reports, Saudi Arabia’s General Authority for Zakat and Tax is going to allow VAT to be paid in instalments over 12 months. This will be allowed if a person or entity being taxed presents evidence they are unable to pay the tax when due, or are suffering hardship from paying the charges in one payment. The taxable person must send a request to the Authority giving the reasons for inability to pay the tax by the due date. The Authority will confirm whether the request is approved or rejected within 20 days. The arrangement can be revoked at any time if the Authority considers it necessary to protect the public revenues or if the person fails to pay two instalments totalling 50% of the total owed.

News developments

UAE’s Standardisation and Metrology Authority has announced it is considering new rules for gold

25/09/201711/12/2019
by Benjamin Filaferro

The UAE’s Standardisation and Metrology Authority has announced it is considering new rules for gold. The rules are expected to be in force by the end of the year. The rules will cover the trade in and stamping of precious stones and metals. The draft rules are being considered following consultation with the relevant parties.

Weekly Spotlight

Weekly spotlight: Bahrain Central Bank has published new Sharia Governance standards

25/09/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on regulatory developments in Bahrain, where the Kingdom’s Central Bank has published new Sharia Governance standards following extensive consultations with the industry and the Central Bank’s Centralised Sharia Supervisory Board.
The new standards will apply from 30 June 2018 and will affect all Islamic retail and wholesale banks in the Kingdom. Amongst other changes, for the first time an Independent External Sharia Compliance Audit will be mandatory. The first audit report will have to be issued in 2020 and will be based on the transactions, structures and activities of 2019. The new standards also clarify the roles and responsibilities of management and Boards of Directors in terms of Sharia compliance. The Sharia governance structure of an Islamic bank will have to have a Sharia Supervisory Board. The Board will need to have a Sharia Coordination and Implementation function, Internal Sharia Audit function and External Independent Sharia Compliance Audit.
Elsewhere, the country’s Labour Market Regulatory Authority has announced it is establishing a new business centre. The Distinguished Service Centre will provide employers with facilities at their workplace, without them having to visit the Authority’s headquarters or other branch. Employers will have to pay a fee to use the centre. A new special hall will also be opened at the Authority’s headquarters for businessmen, foreign investors, banks, local or international companies, or anyone else wishing to use its services. This will also incur an additional cost.

News developments

UAE’s Federal Tax Authority has announced it will open online excise tax registration

25/09/201711/12/2019
by Benjamin Filaferro

The UAE’s Federal Tax Authority has announced it will open online excise tax registration for businesses on 17 September. Businesses will be able to register 24 hours a day, 7 days a week. They will have to register via the Authority’s website.

News developments

Kuwaiti bourse is set to change the limits for trading shares in one transaction

25/09/201711/12/2019
by Benjamin Filaferro

Sources have suggested the Kuwaiti bourse is set to change the limits for trading shares in one transaction whether it is buying or selling by removing the maximum limit of five million shares in one transaction. The aim is to improve the environment for investment companies. Under the amendments, there will not be a limit on the number of shares which can be bought or sold in one transaction as long as the number of traded shares does not exceed 5% of the company’s capital in the Bourse. The amount of shares bought by an investor must also not trigger the need to request an obligatory request offer for purchase under Kuwait Law No. 7/2010 as amended.