Page 6 - ICAI UAE TAX UPDATE_September 2024

4 OTHER TAX UPDATES

4.1 GCC Updates – September 2024

The recent tax updates from the GCC region include key (ZATCA) has launched an initiative allowing taxpayers
developments from the Kingdom of Saudi Arabia (KSA), to cancel fines for late tax registration, payment, and
Qatar, Kuwait, Oman, and Bahrain. filing until 31 December 2024. Eligible participants must
be registered in the tax system and have submitted all
Following are the key updates: outstanding returns, although penalties for tax evasion
are not included.
China is accelerating its negotiations for a free trade
agreement (FTA) with the Gulf Cooperation Council Customs: The Zakat, Tax and Customs Authority (ZATCA)
(GCC), signalling its intent to strengthen trade relations has introduced updated rules regarding fees for customs
with the region. services, set to take effect on 6 October 2024. These rules
will waive fees for export-related customs services while
Simultaneously, the GCC has initiated its first round of adjusting import service fees to 0.15% of the value of
negotiations for a separate FTA with Indonesia, reflecting incoming goods, with a minimum fee of SAR 15 and a
its efforts to expand economic partnerships with Asian maximum of SAR 500.
markets.

Kingdom of Saudi Arabia (KSA)

E Invoicing: The Zakat, Tax and Customs Authority
(ZATCA) has outlined the selection criteria for taxpayers
involved in the Fifteenth Wave of the “Integration Phase”
of E-invoicing. Targeting those with VAT revenues
exceeding SAR 4 million during 2022 or 2023, ZATCA will
notify affected taxpayers to integrate with the Fatoora
Platform starting 1 March 2025.

The Authority (ZATCA) has also established the selection
criteria for taxpayers participating in the Sixteenth Wave
of the “Integration Phase” of E-invoicing. Targeting those
with VAT revenues exceeding SAR 3 million in 2022 or
2023, ZATCA will require these taxpayers to integrate Kuwait
their E-invoicing solutions with the Fatoora Platform
starting 1 April 2025. This phase introduces stricter During a recent visit to Kuwait, Hungary’s Foreign Minister
requirements compared to the initial phase, supporting Péter Szijjártó and Kuwait’s Foreign Minister Abdullah
Saudi Arabia’s digital transformation and economic Al-Yahya signed several cooperation agreements on
development efforts. 5 September 2024. The bilateral meeting focused on
enhancing ties across various sectors, discussing
Fines & Penalties: The Zakat, Tax and Customs Authority regional developments, and formalizing commitments
6 www.icaidubai.org

UAE TAX UPDATE NEWSLETTER ISSUE 06 - September 2024