GCC Indirect Tax Weekly Digest

UAE developments

FTA announces applications for tax residency and commercial activity certificates

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has announced that it will begin receiving applications to issue tax residency and commercial activity certificates from 14 November 2020.

Applications may be submitted from this date via the FTA’s e-services portal for Tax Residency Certificates and Commercial Activity Certificates, which UAE businesses may wish to utilize.

In addition to this announcement, the FTA has also published Cabinet Decision No. 65 of 2020 on Fees for the Services Provided by the Federal Tax Authority. The Cabinet Decision sets out the fees applicable for FTA services, including the issuance of certificates and various registrations.

FTA publishes updated Payment User Guide

The FTA has published an updated version of its Payment User Guide. The updated guide specifies that eDirham payments must be made via the eDirham Instant App, which is available on the Apple App Store and Google Play for mobile devices. The app is used to generate a One Time Password (OTP) for the payment.

The payment instructions in the guide have also been updated to detail the OTP procedure.

Abu Dhabi Customs launches new incentives and services

Abu Dhabi Customs has announced the launch of a new package of incentives and services to support imports and partners.

These include the following:

• Ability to replace bank guarantees with institutional guarantees;
• Simple electronic procedures to release customs declarations across Abu Dhabi ports;
• Free and smooth transportation, and electronic monitoring of goods between free zones and customs warehouses; and
• Smart customs services that enable customers to submit their customs declarations easily and smoothly via several platforms.

KSA developments

GAZT publishes guide on Real Estate Transaction Tax

The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has published a detailed guide in Arabic on the Real Estate Transaction Tax (RETT).

The guide provides further clarity on the recently introduced RETT and covers the following topics:

• Detailed definitions – e.g. Transaction, Trade-offs, barter, lease finance, Ijarah contracts, off-plan properties and Real Estate companies;
• Tax base calculation;       
• Tax due date;
• Detailed explanation for each case of the exclusions;
• Mechanism of Real Estate Transaction service;
• Penalties and tax evasion cases;
• Objections;
• GAZT powers;
• Transferor’s liabilities;
• Tax treatment of off-plan properties; and
• Rulings.

KSA virtual Tax conference

For several years, Deloitte has held its annual tax conference in KSA to update clients on global, regional and local tax updates and technology solutions. In light of the global circumstances, our 2020 tax conference will be held virtually and the sessions will be delivered over two days where our experts will cover the developments in the Kingdom surrounding Direct Tax, Transfer Pricing, VAT and Customs and Global Trade. To learn more about the conference, or register to confirm your virtual seat, please click here.

Oman developments

VAT academy

Deloitte has launched its Oman Virtual VAT Academy which includes a series of webinars specifically designed to support those in Oman with their VAT
implementation journey. Industry specific sessions will be held on a bi-weekly
basis and a formal invite with all event particulars will be shared with you
imminently.

This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.