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TaxFlash
1 September 2022

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TaxFlash has been designed to keep our clients and contacts up-to-date with relevant tax developments. Please contact the Keypoint tax team if you have any questions about anything covered in this TaxFlash. Click here if you'd like to be added to our mailing list.
Bahrain
  • According to ministerial order 106 of 2018, any MoIC-regulated entity that carried out a ‘relevant activity’ in Bahrain in FY2021 should have submitted an economic substance (ES) return using the National Bureau for Revenue’s (NBR) international tax information exchange system (ITIES) portal by 31 March 2022. We understand that the deadline was extended although an official circular is yet to be published by the MOIC. For support with completing and submitting your ES return, contact Keypoint’s tax team.
  • The NBR participated in the seventh session of the Princess Sabika bint Ibrahim Al Khalifa Award for the Advancement of Bahraini Women.
  • NBR representatives continue to work with teams from the MOIC, inspecting shops and commercial establishments to check VAT is being applied correctly.
Saudi Arabia 
  • The Zakat, Tax and Customs Authority (ZATCA) has approved amendments to the real estate transaction tax (RETT) regulations and procedures for input VAT recovery by licensed real estate developers. See today’s technical tip for more information.
  • ZATCA and Mawani have signed an agreement to regulate joint activities at Jeddah Islamic Port.
  • More than 10,000 ZATCA inspections were carried out in August 2022.
UAE
Oman
  • The Oman Tax Authority (OTA) recently organised two workshops on VAT and corporate income tax in the Salalah free zone.
  • The OTA has launched a call center for tax-related queries which can be contacted on 1020.
Qatar
  • The General Tax Authority recently organised a workshop in cooperation with the Institute of Public Administration to prepare for implementation.
Kuwait 
Beyond the GCC
  • No updates this week.
 Technical tip |  Saudi Arabia
Real estate developments

The Zakat, Tax and Customs Authority (ZATCA) recently approved new rules and procedures (which took effect on 29 July 2022) regarding input VAT recovery by licensed real estate developers. Specifically, the measures relate to the recovery of VAT on goods and services purchased in Saudi Arabia which are directly linked to developers’ (exempt) supplies of real estate. As a pre-requisite to recovering eligible VAT, developers must meet qualification requirements. The new rules and procedures cover registration application and refund filing processes, ownership requirements, VAT refund filing frequency and document retention requirements, as well as eligibility requirements to apply for input VAT refunds.

ZATCA has also approved amendments to the real estate transaction tax (RETT) regulations which took effect on 19 August 2022. The amended regulations introduce new exemptions for real estate transfers, set out RETT refund circumstances and clarify that dates and periods in the regulations are determined by the Gregorian, not the hijjri, calendar.

If you have any tax-related questions on real estate developments in Saudi Arabia, contact Keypoint’s tax team.

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© 2022 KEYPOINT - DISCLAIMER

TaxFlash is intended to provide general updates in relation to tax in the GCC. It is not a substitute for professional advice. You should seek appropriate professional advice from a tax advisor before making any decision relating to your particular circumstances.
 
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