1) KSA: customs alert self-correction program (PDF 73.6 KB)

The Saudi Arabia General Customs Authority (Saudi Customs) recently introduced a self-correction program enabling importers to declare and pay customs duties on any historic non-compliance with the KSA customs legislation. Through this initiative, importers voluntarily submit a request to correct customs data and pay customs duties and/or taxes that were not previously paid due to:

- the inaccuracy of the information provided in the customs declarations relating to the distinctive elements of the goods (value, origin, or classification); or

- The presence of events subsequent to the date of submission of customs data that have not been reported to Saudi Customs.

2) Bahrain: NBR publishes ‘Change of VAT Filing Frequency Manual’ (PDF 1.09 MB)

The National Bureau for Revenue (NBR) has published a new guideline named ‘Change of VAT Return Filing Frequency Manual’ in support of Article (48) of the Bahrain VAT Executive Regulations.

According to Article 48(A) of the Bahrain VAT Executive Regulations, VAT payers in Bahrain with less than or equal to BHD 3 million in annual taxable supplies are set to file on a quarterly basis, while VAT payers with more than BHD 3 million are expected to file on a monthly basis. In accordance with Article 48(C) of Bahrain’s VAT Executive Regulations, VAT payers with less than BHD 3 million in annual taxable supplies may request to file on a monthly basis.

Global Inside Indirect Tax

The KPMG monthly publication featuring global indirect tax updates from around the world. Click here (PDF 275 KB) for the publication web page.

1) OECD’s revised “Unified Approach” to tax challenges of digitalization

On 31 January 2020, the Organization for Economic Cooperation and Development (OECD) issued a statement (the Statement) by the OECD/G20 Inclusive Framework on BEPS, reaffirming its commitment to reach a consensus-based long-term solution to the tax challenges arising from the digitalization of the economy. The Statement also clarified that the Inclusive Framework will continue following a two-pillar approach in working toward an agreement by the end of 2020. In support of this goal, the Inclusive Framework announced its intent to reach agreement on the key policy features of the two-pillar solution by its next meeting in early July 2020.

2) OECD: Technology to support exchange of tax information

The Organization for Economic Cooperation and Development (OECD) today announced the release of IT-formats and guidance to support the technical implementation of the OECD “Treaty Relief and Compliance Enhancement” (TRACE) initiative, as well as to facilitate the broader use of the OECD common transmission system (CTS) for the exchange of information between tax administrations.

As explained in the OECD release, TRACE is a standardized system that allows the claiming of withholding tax relief at source on portfolio investments. It aims to remove the administrative barriers that affect the ability of portfolio investors to claim the reduced rates of withholding tax.

The standardized IT-format is being released to support the reporting of information under the TRACE AI system—the TRACE XML Schema and User Guide.

3) EU: Updated “blacklist” of non-cooperative jurisdictions

The European Union, as of 18 February 2020, added four jurisdictions—the Cayman Islands, Palau, Panama and Seychelles—to the EU list of non-cooperative jurisdictions, the “blacklist.”

4) China: Tax challenges and policy options, coronavirus epidemic

On 1 February 2020, the Ministry of Finance (MoF), General Administration of Customs (GAC) and State Taxation Administration (STA) jointly issued Announcement 6, and STA on 30 January 2020 issued Circular 19. These guidance items set out preferential measures to support enterprises and citizens to fight against the outbreak.

5) Spain: Draft legislative proposal for digital services tax

 On 18 February 2020, the Spanish government gave its approval for draft legislation to impose a tax on certain digital services. The tax would be imposed at a rate of 3%.

6) Singapore: Tax measures in budget 2020

Singapore’s budget for 2020 reveals that a planned 9% increase in the rate of the goods and services tax (GST) would not take place in 2021.

Events

KPMG global indirect tax services webcast

EU Mandatory Disclosure Regime – impact for financial services.

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