Page 9 - ICAI UAE TAX UPDATE_AUGUST 2024

4 OTHER TAX UPDATES

4.1 GCC Updates

The recent tax updates from the GCC region include key international investors by ensuring greater equality
developments from the Kingdom of Saudi Arabia (KSA), between domestic and foreign investors. Scheduled to
United Arab Emirates (UAE), Oman, and Bahrain. take effect six months after its publication in the official
gazette, in February 2025, the New Investment Law is part
Following are the key updates: of a comprehensive suite of regulatory reforms aimed at
fostering a more investment-friendly environment.
Kingdom of Saudi Arabia (KSA)
These reforms include the Civil Transactions Law, the
VAT Amendments 2022 Companies Law, the establishment of Special
Economic Zones, and adjustments to merger control
Saudi Arabia is seeking public input on proposed notification thresholds. The implementing regulations
amendments to its VAT Implementing Regulations until for the New Investment Law are expected to be released
19 September 2024. The revisions aim to refine VAT within the same period, further clarifying its application
application across several areas, including tax groups, and impact.
refunds, economic zones, and electronic marketplaces.
Key changes include stricter rules for VAT groups, such The Zakat, Tax, and Customs Authority (ZATCA) has
as banning members in special zones from joining launched a public survey on proposed amendments
multiple groups and requiring a formal agreement for to the VAT Implementing Regulations, available on the
group formation. Authorities will gain the power to Istitlaa platform. The survey, open until 17 September
dissolve VAT groups retroactively if tax benefits conflict 2024, aims to gather feedback and suggestions from
with legal intent. Businesses must notify the authority the public and interested parties. This initiative is part of
within 30 days of transferring economic activities, and ZATCA’s commitment to transparency and stakeholder
the new owner must retain relevant tax records. engagement in shaping laws that impact the business
environment. The draft amendments can be reviewed on
The amendments also update the valuation process the Istitlaa Platform, where participants are encouraged
for deemed supplies, introduce zero-rating for goods to contribute their insights.
in customs duty suspension within special zones, and
expand VAT compliance obligations for electronic Oman
marketplaces. Furthermore, the VAT refund process
will see new categories, stricter documentation Launch of Capital Market Incentive Program
requirements, and a revised system for tourist VAT
refunds. The Muscat Stock Exchange (MSX) has unveiled its new
Capital Market Incentive Program, which seeks to attract
Investment Law private companies to list on the exchange through
On August 11, 2024, the Kingdom of Saudi Arabia three distinct pathways, each supported by a dedicated
introduced a new Investment Law, effectively repealing incentive package. This initiative is a pivotal component
the existing Foreign Investment Law. This New Investment of the National Program for Fiscal Sustainability and
Law is designed to bolster the Kingdom’s appeal to Financial Sector Development, “Estidamah,” and is
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UAE TAX UPDATE NEWSLETTER ISSUE 05 - August 2024 ISSUE 05 - August 2024 UAE TAX UPDATE NEWSLETTER