Welcome to the October edition of our tax newsletter, bringing you news on global and regional tax developments. 

Global updates

BEPS 2.0 - Inclusive Framework Release

On 8 October 2021 the Inclusive Framework (IF) on Base Erosion and Profit Shifting released details of an agreement which refines the statement of 1 July 2021.

In terms of consensus, 136 of the 140 Inclusive Framework countries have agreed to this release. Pillar 1 deals with the reallocation of certain profits from large Multinational Enterprises (MNEs) to market jurisdictions. Pillar 2 deals with a Global Minimum Tax.

The statement also includes a detailed implementation plan with timelines for the development of detailed rules, for legislative implementation, and target effective dates.

See our Tax Alert here

GCC updates

The United Arab Emirates (UAE)

UAE Cabinet has issued Decision No. 88 of 2021 amending Article 51 of the UAE VAT Executive Regulations

The UAE Cabinet has issued Decision No. 88 of 2021 as part of the Official Gazette on 14 October 2021, amending Article 51 of the UAE VAT Executive Regulations (Regulations) concerning the provisions relating to Designated Zones.

The amendments will be effective from 15 days after publication of the decision in the Official Gazette, i.e. 29 October 2021.

See our Tax Flash here

Saudi Arabia

ZATCA issues a new VAT guide for e-commerce in Saudi Arabia

Saudi tax authorities’ activities in the e-commerce area were at the top news headlines worldwide recently. Previously to this, in August 2021 the Zakat, Tax and Customs Authority (ZATCA) published a new guideline in which it rethinks its vision of the VAT regime of the e-commerce industry in Saudi Arabia, mostly addressing the treatment of the ride-sourcing applications.

See our VAT Alert  here

ZATCA amends the VAT application to government contracts starting from 1 November 2021

On 9 October 2021, The Zakat, Tax and Customs Authority (ZATCA) announced amendments of Article 20, “Date of Supply in specific circumstances”, of the Saudi Arabian VAT Implementing Regulations- effective from 1 November 2021.

The amendments are designed to support the taxpayers who provide goods and services through contracts concluded under the KSA Government Tenders and Procurement Law (GTPL). ZATCA also issued a guide that clarifies the provisions of new legislation (the Guide).

See our VAT Alert  here

ZATCA has published draft legislation on e-invoicing for public consultation

The Saudi Arabian Zakat, Tax and Customs Authority (ZATCA) published draft amendments to the VAT Implementing Regulations related to e-invoicing for public consultation on 27 September 2021.

 Interested parties may register on the Public Consultation Platform to provide comments by the deadline. The deadline for comments was 23 October 2021.

See our VAT Alert  here

Oman

Oman Tax Authority opens a new branch in Sohar

Historically, the Oman Tax Authority (OTA) has been functioning in the capital city of Muscat.

Within the framework of developing the services provided by the OTA and for the purpose of facilitating the taxpayers, the OTA has opened a branch office in the Wilayat of Sohar in the North Al Batinah Governorate on 3 October 2021.

It is expected that the OTA will open few more branches in other governorates as well.

Get in touch

Abdulaziz Alnaim

Acting Head of Tax, Saudi Arabia

E: aalnaim@kpmg.com

Stuart Cioccarelli

Head of Tax, Lower Gulf 

E: scioccarelli@kpmg.com