Tax January 21' - Emirates Chartered Accountants Group
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Tax
Updates
January 21’
www.emiratesca.com | www.ecabahrain.com
UAE | BAHRAIN | OMAN | UK | INDIA
United Arab
Tax Update Emirates
January ‘21
03 United Arab Emirates
Excise Tax Administrative UAE announces citizenship
Exception Guide released for Expats
by FTA
The Federal Tax Authority has After the announcement of
05 Kingdom of Bahrain
issued an Excise Tax Adminis-
trative Exception Guide which
10-year golden visa to certain
categories of Individuals, the
provides registrants with con- United Arab Emirates approved
06 Kingdom of Saudi Arabia
cessions/ exceptions if difficult
circumstances prevent them
amendments to its laws on 30
January 2021 to allow investors,
from following certain proce- professionals, special talents
08 Sultanate of Oman
dural aspects of the Law or
Regulation.
and their families to acquire the
Emirati nationality and pass-
port under certain conditions.
09 Qatar
The Exception can be made
only in relation to alternative In a statement concerning the
supporting evidence to confirm changes to the citizenship law,
the export of goods from the authorities said the job catego-
UAE. The request can be made ries that can qualify to acquire
by the Authorized Signatory, the Emirati nationality include:
appointed Tax Agent or Legal investors, doctors, specialists,
Representative by submitting inventors, scientists, talents,
the filled in Excise Tax Adminis- intellectuals, artists and their
trative Exception Form to spe- families (spouse and children).
cialexceptions@tax.gov.ae.
10 Certain Other Jurisdictions
2 | Tax Updates – January 2021 3 | Tax Updates – January 2021
Joint stock companies in Dubai required to list in local exchanges
Kingdom of
In his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE HH Sheikh Moham-
med bin Rashid Al Maktoum has issued a new decree on the listing of joint stock companies in se-
Bahrain
curities exchanges in Dubai.
Kingdom of Bahrain publishes VAT Guidance on Changes in the Place of Supply of
Under this, all local public joint stock companies established in the emirate, including those set up Telecommunication Services
in special economic zones or free zones including the Dubai International Financial Centre (DIFC),
should list their stocks in local securities exchanges including Dubai Financial Market (DFM) and
Nasdaq Dubai. Kingdom of Bahrain’s Nation This clarification sets out the in- The purpose of the amend-
Bureau for Revenue (NBR) has tention of the National Bureau ment is to align the place of
According to the decree, foreign companies should list their stocks in local markets when their an- on 31 December 2020, for Revenue (NBR) to supply rules for these
nual profit or revenue generated from activities in Dubai make up at least 50% of the total, or when published VAT Public Clarifica- amend the “use and enjoy- services with the International
their total assets owned in Dubai amount to 50% or more of their entire assets. The listing should tion VAT/PC/20/3 on the place ment” rules under which the Telecommunications Regula-
be completed within one year of the date of reaching this percentage. of supply of telecommunica- place of supply for c e r t a i n tions (Melbourne 1988),
tion services that will be effec- telecommunications services is also known as the Melbourne
All companies that are subject to this decree, should change their status within a year of the issu- tive from 1 February 2021. determined for VAT purposes. Agreement, to which Bahrain is
ance of the Decree. Licencing authorities can extend the deadline by same period as required. a party.
Kingdom of Bahrain updates VAT Guide
The National Bureau for Revenue (NBR) in Kingdom of Bahrain has published an updated VAT
General Guide, setting out:-
• guidance on how to determine the place most closely connected with a supply,
• fees payable for certain NBR services,
• issue of VAT Registration Certificate on request, and
• the procedures for requesting a review of an assessment (pre-appeal).
4 | Tax Updates – January 2021 5 | Tax Updates – January 2021
Kingdom of
Saudi Arabia
New exceptions from the
• 100% penalty relief is
Real Estate Transaction Tax
provided where the principal
(‘RETT’) in the Kingdom of
amount of outstanding tax due
Saudi Arabia is paid from January to March
2021,
Pursuant to the Royal Order • 75% penalty relief is pro-
A/84 exempting the supply of vided if paid from April to May Discoveries of manipulation on financial
real estate properties in KSA 2021, and reporting by the GAZT
from VAT and reference to what • 50% penalty relief is
is stated in paragraph “d” of Ar- provided if paid in June 2021.
ticle 4 and paragraph “a/13” of The General Authority of Zakat and Tax (GAZT) in
Article 3 of RETT Implementing It is also clarified that 100% the Kingdom of Saudi Arabia, has recently discov-
Regulations, the Board of Di- penalty relief is provided where ered Financial Reporting manipulations of a few
rectors of GAZT has approved outstanding tax debts have enterprises as reported by Al Watan newspaper.
amendment/additions to Arti- been paid in full before the ef-
cle 3a of the RETT Implement- fective date of the latest initia- The Saudi Organisation for Certified Public Ac-
ing Regulations. tive (21 January 2021). No pen- countants (SOCPA) will punish the manipulators
alty relief is provided, however, of Company financial statements while the Gen-
The amendments aim to ex- in relation to penalties for tax eral Authority of Zakat and tax are set to impose
tend the scope of application of evasion. penalties.
the RETT exemption to certain
transactions. The amendment The recent discoveries have pushed the GAZT to
enters into force from 22 Janu- incorporate further electronic linkages within the
ary 2021. financial reporting framework. It aims to achieve
this goal by teaming with the Ministry of Com-
merce to open the “Qawaem” portal to submit
Saudi Arabia Extends Financial Statements by all enterprises and com-
COVID-19 Penalty Relief panies.
Initiative by 6 Months
On 21 January 2021, the Gen-
eral Authority of Zakat and
Tax (GAZT) has announced the
extension of its penalty relief
initiative in response to the
COVID-19 pandemic by an ad-
ditional six months to 30 June
2021.
Penalty relief was previously
provided up to 31 December
2020. As extended,
6 | Tax Updates – January 2021 7 | Tax Updates – December 2020
Sultanate of Qatar
Oman
Outstanding liabilities to be updated in Dhareeba Portal
Budget 2021 of Sultanate of Sultanate of Oman issues
Oman released list of food products that
are subject to Value Added The General Tax Authority (“GTA”) has formally closed the previous
Tax at Zero percent Tax Administration System (“previous TAS) and effective from 1st
His Majesty Sultan Haitham bin
November 2020 the GTA requires all tax services and obligations to
Tarik issued two Royal Decrees
be dealt through “Dhareeba”.
(“RD”) on 1 January 2021, pub-
lished in the Official Gazette on Ministerial Decree 2/2021, dat-
ed 4 January 2021, detailed the The GTA has also migrated data from the previous TAS to Dhareeba,
3 January 2021,
list of food products that will be including the balances of tax liabilities (related to both income tax
subject to VAT at the zero rate and WHT) and penalties.
• RD 1/2021 - Promulgat-
ing the Tenth Five-year Devel- in Oman. The list consists of
93 food products with their HS Recently the GTA have requested (via emails) the taxpayers to review
opment Plan (“10th FDP”)
codes. and update their account statements in the Dhareeba portal within
the stipulated deadline.
• RD 2/2021 - The 2021
State Budget Sultanate of Oman Extends
Deadline for First CbC Re-
port Notifications
Value Added Tax (‘VAT’)
Guide released by tax Au-
The Sultanate of Oman Tax Au-
thorities
thority has announced an ex-
tension in relation to the dead-
With few months remaining line for filing the notification
before VAT is formally imple- under Article (5) of the Decision
mented in Sultanate of Oman, No. 79/2020 on Rules for Coun-
the Oman Tax Authority (OTA) try-By-Country Reporting for
has released a guide on VAT entities whose reporting fiscal
explaining the registration re- year ends December 31, 2020.
quirements for business and The deadline has been extend-
individuals. ed from 31 December 2020 to
The guide confirms that the go April 30, 2021. This decision
live date for VAT in Sultanate of aims at assisting the address-
Oman is 16 April 2021 and the ees by the decision and take
VAT registration will take effect into consideration the excep-
in a phased manner i.e. based tional circumstances this year.
on the revenue of the taxable However, the deadline for filing
person. the report stipulated in Article
(7) of the same decision re-
mains unchanged.
8 | Tax Updates – January 2021 9 | Tax Updates – January 2021
Certain Other
Jurisdictions
UNION BUDGET
2021-22
India
India Introduces Faceless Penalty Scheme
India’s Central Board of Direct Taxes has introduced India releases its Annual
a Faceless Penalty Scheme, 2021 through Notification Budget for the financial
No. 2/2021. year 2021-22:
The scheme has been introduced in relation to the
India’s Finance minister In her speech, the finance
faceless assessment and faceless appeal schemes in-
Ms. Nirmala Sitharaman minister mentioned that
troduce in 2020, which essentially allow for income tax
unveiled the Union Budget this year budget proposals
matters to be handled entirely online without taxpay-
2021 in the Parliament on rest on six pillars includ-
ers and the tax authority needing to meet in person.
February 1, 2021. It is the ing — health & well-being,
first digital budget in the his- physical & financial capital
Similar to the other faceless schemes, the Faceless Pen-
tory of India. & infrastructure, inclusive
alty Scheme includes the establishment of a national
development for aspira-
center, the National Faceless Appeal Centre, as well as
Being the first budget of a tional India, reinvigorating
regional centers and, local penalty and penalty review
new decade and also the human capital, innovation
units to handle the penalty process.
one during the pandemic, & R&D, Minimum Govt &
the budget was focused on Maximum Governance.
CBDT extends due date for filing declaration boosting, encouraging India
under Vivad Se Vishwas scheme towards being Aatmanir- Finance minister also
bhar (Self-Reliant). The two launched the “Union Bud-
main key segments where get Mobile App” for has-
The Central Board of Direct Taxes (CBDT) on Monday the government focused its sle-free access of Budget
further extended the due date for filing declaration un- spending were - infrastruc- documents by Members of
der the ‘Vivad Se Vishwas’ (VSV) scheme till February 28, ture and health. There was Parliament and the gener-
2021. no change in Income Tax al public using the simplest
slabs this year. form of digital convenience.
As per a CBDT’s notification, the date for payment of
tax without additional interest under VSV remains un-
changed at March 31, 2021.
10 | Tax Updates – January 2021 11 | Tax Updates – January 2021
United Egypt
Kingdom Egypt Publishes Guidelines
on the Tax Treatment of
HMRC announces EU’s Man- Capital Gains Realized by Singapore This includes guidance on:
datory Disclosure Regime Non-Residents on Unlisted
• Supply of imported
(“DAC 6”) ceases to apply in Shares Singapore Publishes Updat-
goods to local customers;
its entirety in the UK ed GST Guide for property
Egypt’s Ministry of Finance has • Claiming import GST;
published English-language owners and holding compa- • Correcting errors made
Following the conclusion of the guidelines on the tax treatment nies: on importation of goods;
UK’s Free Trade Agreement of capital gains realized from • Importing goods on be-
(“FTA”) with the EU, the UK’s tax the sale or disposal of shares On 8 January 2021, the Inland half of an overseas person;
authority, Her Majesty’s Reve- not listed on the Egyptian Stock Revenue Authority of Singa- • Re-importing goods
nue and Customs (“HMRC”) has Exchange by non-residents as pore (IRAS) published an up- belonging to local persons or
confirmed on December 31, per Ministerial Decree No. 610 dated e-Tax Guide for property GST-registered overseas per-
2020 that the UK will no longer of 2020. owners and property holding sons; and
be applying DAC 6 in its entire- companies. • GST suspended at the
ty. The guidelines cover sales or point of importation.
disposals of unlisted shares The purpose of the guide is to
by both natural and legal (judi-
Switzerland
DAC 6 imposed mandatory re- explain how GST affects prop-
porting of potentially aggres- cial) persons. Some of the key erty owners and property hold-
sive tax planning arrangements points include the following: ing companies. It includes guid-
which meet one or more spec- ance on the application of GST E-Filing of VAT Returns Man-
ified characteristics (hallmarks) The applicable tax rates on for property transactions and
net taxable capital gains from datory in Switzerland from
by EU based intermediaries or whether persons involved in
the sale or disposal of unlisted property transactions need to January 2021
taxpayers to the tax authorities
and required the automatic shares are as follows: register for GST. The guide also
exchange of this information • Legal persons - 22.5% clarifies the type of property Switzerland has made electron-
among the EU Member States. • Natural persons - indi- that qualifies for GST exemp- ic filing of VAT returns manda-
Reporting will still be required vidual income tax from 0% to tion. tory for all taxpayers.
for a limited time, but only for 25% as per standard tax brack-
arrangements which meet hall- ets Singapore Publishes Updat- The e-filing requirement ap-
marks under Category D of the • Net Taxable Capital plies from 1 January 2021 in-
ed GST Guide on Imports
DAC 6 legislation. Gains = Sale or Disposal Price cluding in respect of Q4 2020
– Acquisition Cost – Brokerage reporting and the Q3 2020 re-
On 20 January 2021, the Inland
HMRC has also confirmed that Commission. porting, although paper filing
Revenue Authority of Singa-
the change applies retrospec- pore (IRAS) published an updat- for Q3 2020 may still be accept-
tively and will thus apply to The guide also includes that ed upon request.
ed e-Tax Guide concerning GST
both historic (25 June 2018 - 30 the late payment of capital
on imports.
June 2020) and future (1 July gains tax due will be subject VAT can be settled online by
2020 onwards) cross-border ar- to a delay fine (interest) equal registered taxpayers or their
The purpose of the guide is to
rangements. to the credit and discount rate representative through a new
provide details on GST matters
announced by the Central Bank Easy VAT Statement option
relating to the importation of
In the coming year, the UK in- plus 2%. available from January 2021,
goods, including GST reporting
tends to implement the OECD’s requirements and various im- which does not require account
Mandatory Disclosure Rules In cases of evasion, a fine equiv- registration.
port related schemes.
(the “MDR”) to replace DAC 6 alent to the unpaid tax may be
and transition from EU to inter- imposed, as well as possible
national rules. imprisonment of between 6
months and 5 years.
12 | Tax Updates – January 2021 13 | Tax Updates – January 2021
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Disclaimer: The publication has been prepared for general guidance by Emirates Chartered Accountants - Tax Help Desk on matters of interest only, it
does not constitute any professional advice. Emirates Chartered Accountants Group does not accept any responsibility or assume any liability for the
consequences in reliance on the information in this publication or for making any decision based on it.
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