News

This week the spotlight is on the issuing of the new Tax Procedures Law in the UAE. Under Federal Law No. 7/2017 (which has not yet been Gazetted), the foundations for the tax system are laid out whilst the administration and collection of taxes processes are stipulated and the role of the Federal Tax Authority is defined. It also defines a clear set of common procedures and rules to be applied to all tax laws in the UAE, particularly VAT and excise tax laws. The law covers tax procedures, audits, objections, refunds, collection and obligations, including tax registration, tax-return preparation, submissions, payment and voluntary disclosure rules as well as tax evasion. It also lays out the penalties for non-compliance as well as clear appeal processes in line with international best practices. When it comes into force businesses will have to keep records for five years.

An unofficial translation of the Law can be accessed here: https://www.mof.gov.ae/en/lawsAndPolitics/govLaws/Pages/TAX.aspx. We are monitoring the legislative progress of this important development with our publishing Partners, SADER Legal Publishing and will provide updates as and when appropriate.

This week the spotlight is on legal and regulatory developments in Oman, where the Manpower Ministry and Central Bank have announced plans to introduce a Wages Protection System (WPS) for all private sector companies, with a trial phase to begin on 18 November 2017. The WPS aims at controlling the payment of wages by employers to ensure timely receipt of salaries by employees per the amounts agreed in their employment contracts. The programme comes as a result of implementation of Article 53 of the Labour Law imposing the obligation of depositing the employee’s salary through one of the locally approved banks. It is expected further details of the programme will be released closer to the start date. Employers in the private sector will soon be required to subscribe to the Wages Protection System for submission of their employees’ salaries through the Central Bank of Oman.

Elsewhere, Oman’s Sultan has approved a number of Sultani Decrees including Oman Sultani Decree No. 33/2017 approving the GCC Commercial Transactions Law. It will be published in the Official Gazette along with Oman Sultani Decree No. 34/2017 promulgating the Veterinarian Products Law which will apply to veterinarian products.

This week the spotlight is on legal and regulatory developments in Bahrain, where the Kingdom’s Telecommunications Regulatory Authority (TRA) Bahrain has issued a new Resolution aimed at enhancing telecommunication security in the country. The Regulation on Critical Telecommunications Infrastructure Risk Management, Bahrain Decision No. 5/2017 has been published in the Official Gazette. The Authority intends to work with licensees to ensure certain telecom infrastructure is safeguarded and business continuity and disaster recovery plans are put in place. The Authority is also aiming to maintain essential telecommunication services in the light of threats, by imposing a minimum set of obligations on key telecommunications infrastructure owners and service providers. These obligations will introduce the necessary resilience and emergency planning measures required to mitigate the risks posed by the rising cyber threats critical telecommunications networks face on a daily basis. Finally the Authority will establish procedures for the reporting of data breaches to it.

Elsewhere Bahrain’s King, Hamad bin Isa Al-Khalifa has ratified and issued four laws including the Family Law (Bahrain Law No 19/2017). King Hamad also issued Bahrain Law No. 18/2017 on Penalties and Alternatives Measures and Bahrain Law No. 20/2017 approving the state general budget for the fiscal year 2017-2018. Finally he issued Bahrain Law No. 21/2017 amending Bahrain Decree-Law No. 15/1977 issuing development bonds.