The Sultanate of Oman
The list of sugar-sweetened beverages subject to excise tax.
Recently, the Sultanate of Oman has implemented an excise tax on sugar-sweetened beverages.
The Oman Tax Authority has released on their website FAQs, the list of SSBs subject to excise tax, an implementation guide of excise tax on sweetened drinks and a guide on filing of the transitional returns.
KSA
E-Invoicing - Draft Regulations (Arabic).
The General Authority of Zakat and Tax (‘GAZT’) has published a draft of the Electronic Invoicing (‘E-Invoicing’)Regulations on its website. Stakeholders are required to submit their opinion/feedback by 17th October 2020.
The aim of the initiative is to reduce the administrative burdens on taxpayers, increase the level of tax compliance, minimize hidden transactions and reduce anti-commercial concealment.
New Royal Order Number A/84 impacting Real Estate Transactions (Arabic).
On 14/2/1442 H (corresponding to 2 October 2020), Royal Order Number A/84 was issued to exempt real estate disposal transactions from VAT, impose a new transaction tax on real estate disposal transactions and grant the Minister of Finance (MoF), in his capacity as the chairman of the General Authority for Zakat and Tax (GAZT), the power to set the terms of the application of the new tax as well as some specific requirements related to the Royal Order itself.
The Minister of Finance (“MoF”) has issued a resolution No. 662 dated 09/02/1442AH corresponding to 26 September 2020 whereby some of the fiscal stimulus initiatives launched earlier, in accordance with the Royal Decree No. 45089 dated 23/07/1441AH corresponding to 18 March 2020 and Ministerial Resolution No.3430 dated 5/08/1441AH corresponding to 29 March 2020, has further been extended for an additional period of three months (i.e. until 31 December 2020). Additionally, the resolution also provides the cancelation and waiver of all financial penalties imposed by GAZT on taxpayers who appealed against GAZT’s decision (assessments) under certain conditions.
This resolution applies to all taxes such as zakat, corporate income tax, withholding tax, value added tax and excise tax.
VAT Implementing Regulations (Amended).
In accordance with the directions stipulated in the Royal Order Number A/84, the Board of Directors of GAZT has approved the amendments/additions of some articles of the KSA VAT Implementing Regulations and repealed some other articles.
This change has a potential impact on real estate supplies in KSA. VAT output will no longer be charged, however, this will mostly impact the eligibility for input tax deduction, apportionment and VAT refunds. Real estate developers, Financial Services institutions, Funds and other taxable persons engaged in real estate transactions will be affected by this change and should consider and assess the impact on their operations and VAT compliance.
In addition, since VAT on real estate supplies has been eliminated, the taxation of individuals who were previously perceived to be exercising an economic activities for dealing in real estate properties is no longer applicable. Therefore, the relevant articles have been repealed or amended as they are no longer relevant.
In addition to above, several articles of the VAT Implementing Regulations (Articles 30, 40, 43, 49 etc) have also been amended or added.
A new ‘transaction tax’ on real estate disposal transactions, the Minister of Finance, also the Chairman of Board of Directors for the General Authority of Zakat and Tax (“GAZT”), issued a Ministerial Resolution Number 712 dated 15/2/1441 H (corresponding to 3 October 2020) approving the Implementing Regulations related to the newly imposed transaction tax on real estate disposal transactions.The regulations inter alia provides key definitions, details regarding imposition of transaction tax, due date and payment of tax, administrative provisions, exclusions from the application of transaction tax and provisions
related to penalties etc.
This decision has entered into force as of Sunday 4 October 2020.