GCC Tax Roundup

GCC – VAT refunds for non-residents

• Non-residents that have incurred VAT in the Kingdom of Saudi Arabia (KSA) during the calendar year 2022 can apply for a VAT refund until 30 June 2023.
• Non-residents that have incurred VAT in the United Arab Emirates (UAE) during the calendar year 2022 can apply for a VAT refund between 1 March 2023 and 31 August 2023.
• Non-residents that have incurred VAT in the Sultanate of Oman during the period 1 July – 31 December 2022 can apply for a VAT refund until 30 June 2023. For VAT incurred during the period 1 January – 30 June 2023, the refund window will be 1 July – 31 December 2023.

Oman – Zero rate for supply of electric vehicles and spare parts

The Oman Tax Authority has announced that the supply of electric vehicles and their spare parts in Oman will be zero rated, provided that certain conditions are met (e.g., the car must have a fully electric motor or a hydrogen-powered engine, and be able to move independently).

Qatar – Amended implementing regulations of the income tax law published

Earlier this year, Qatar made several important amendments to the Income Tax Law (read our article here). The recent amendments to the implementing regulations reflect these changes and mainly relate to the definition of Permanent Establishment (PE), attribution of income to PEs, Exemptions, investigative powers of the General Tax Authority and Economic Substance Rules.

United Arab Emirates - ESR reporting deadlines

Businesses with a financial year ending on 31 December must file their Economic Substance (ES) notification by 30 June 2023 (i.e., within 6 months following the end of the financial year end). They will have until 31 December 2023 to file their ES report (i.e., within 12 months following the end of the financial year end).

United Arab Emirates - New Cabinet Decision on FTA services fees effective 1 June 2023

Cabinet Decision No. 7 of 2023 includes a new list of fees that are applicable to services provided by the Federal Tax Authority (FTA). This includes services such as registration of designated zones for excise tax purposes, reviewing applications and issuing a Tax Residency Certificate or Certificate of Commercial Activities.

Most notably, taxpayers will now have to pay the following fees to obtain a private clarification from the FTA:

• AED1,500 where the request relates to one tax
• AED2,250 where the request relates to more than one tax

United Arab Emirates - FTA publishes new Private Clarifications Guide

On 5 June 2023, the FTA published a new Private Clarifications Guide. Previously, private clarifications were submitted through the dedicated e-services portal on the website of the FTA. With effect from 1 June 2023, clarification requests must be submitted via Emaratax.

For the time being, taxpayers can only submit clarification requests with respect to VAT and Excise Tax. The FTA will announce the date from which private clarification requests will be accepted for the new Corporate Income Tax.