Aurifer Middle East Tax

Dubai’s 5-Year Retirement Visa: An Invitation to Global Retirees Dubai welcomes retirees from around the world with its newly introduced 5-year residency visa program. This initiative offers expatriates, along with their spouses and dependents, the opportunity to settle in one of the most dynamic cities globally. A holder of a Dubai retirement visa will be regarded as a UAE resident and thus be able to leave and enter the country at his convenience. Moreover, there is no requirement to stay in the UAE for a minimum number of days. To qualify for the Dubai retirement visa, applicants must be at least 55 years old and fulfil one of the following financial criteria, alternatively: - Option 1: having a minimum annual income of AED 180,000 (approximately USD 49,000) or AED 15,000 (approximately USD 4,100) per month - Option 2: having savings of at least AED 1 million (approximately USD 275,000) in a 3-year fixed deposit - Option 3: owning property of a minimum value of AED 1 million (approximately USD 275,000) - Option 4: a combination of Option 1 and 2, i.e. owning savings and property, each valued at AED 500,000, totalling at least AED 1 million (approximately USD 275,000). Once the preferred financial option is chosen, retirees can proceed with preparing the necessary documentation. The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) has made the application process straightforward. Applicants need to log in through UAE PASS on the ICP website or app, select the ID and residence card service, review their data, update if necessary, pay the fees, and receive their Emirates ID card via approved delivery services. Once the applicant is notified that his application is complete, it may take up to 15 working days to process. Along with meeting all these financial criteria listed in one of the four available options, the applicant must take up medical insurance (existing international insurance may also qualify). Importantly, the retiree may sponsor his/her spouse and children, with no limit to the number of children under sponsorship. The retiree may also sponsor his/her parents for a one-year renewable visa. Any sponsored member of the family must have valid health insurance with coverage in the UAE. The Dubai retirement visa program ensures that retirees enjoy a seamless transition to becoming residents and living in the UAE. This is complemented by excellent healthcare, world-class amenities, and a vibrant cultural scene. For those seeking to retire in one of the world’s most forward-thinking cities, Dubai offers an unparalleled opportunity to embrace the golden years in style. #VisaProcess #UAE #Dubai Stay ahead in the tax landscape with our Newsletter: https://shorturl.at/fnaVc. Get the latest GCC tax updates directly to your inbox!

Saudi Arabia Increases its Network of International Tax Agreements The Kingdom of Saudi Arabia (KSA) recently made significant strides in its international tax and trade relations, with several important agreements signed in early December 2024. These developments reflect the country’s active engagement in fostering stronger economic ties and ensuring modernized frameworks for cross-border cooperation. Among the key updates are new tax treaties with Croatia, Iceland, and Kuwait, as well as agreements on customs cooperation and air services. On December 4, 2024, tax treaties were signed with Croatia, Iceland, and Kuwait during various meetings in Riyadh. These treaties aim to address double taxation and set comprehensive frameworks for income and capital taxation between KSA and the respective countries. Notably, the treaty with Croatia replaces an initialled agreement from 2017, which is now considered abandoned. The updated terms underscore a commitment to aligning with contemporary international tax practices. In addition, Saudi Arabia signed a Customs Mutual Assistance Agreement (CMAA) with Kosovo on the same day. This agreement highlights a shared commitment to enhancing customs cooperation, facilitating trade, and effectively addressing related challenges. Further broadening its diplomatic and economic engagement, KSA signed an air services agreement with Lithuania on December 2, 2024. This agreement aims to boost connectivity and promote economic and cultural exchanges between the two nations. These developments underscore Saudi Arabia’s growing role in global tax and trade cooperation, demonstrating its intent to strengthen international partnerships and adapt to evolving economic needs. #KSA #Tax #TaxTreaties Stay ahead in the tax landscape with our Newsletter: https://shorturl.at/fnaVc. Get the latest GCC tax updates directly to your inbox!

Bahrain Releases Executive Regulations and Enables Registration for Domestic Minimum Top-Up Tax (DMTT) On December 15, 2024, Bahrain’s National Bureau for Revenue (NBR) released the Executive Regulation No. 172 of 2024 on 12 December 2024 (the “‘Executive Regulations” or “ERs”) for the Domestic Minimum Top-Up Tax (DMTT), introduced by Decree-Law No. 11 of 2024 on September 1, 2024, and enabled registration functionality for in-scope Multinational Enterprise (MNE) Groups. Along with the ERs implementing the OECD’s Pillar Two (GloBE rules) Framework in Bahrain, the NBR published a guide to provide a high-level overview of the scope of the DMTT Law and to outline the registration requirements and process relevant for such entities. Bahraini ERs include key provisions for implementing the DMTT in the country, such as the definition of Permanent Establishments (PE), covering Fixed Place PE, Agency PE, and Assembly PE. Bahrain’s first formal Transfer Pricing (TP) framework includes methodologies such as Comparable Uncontrolled Price (CUP), Resale Price, Cost Plus, TNMM, and Profit Split, with requirements for Local and Master Files. Entities meeting the EUR 750 million threshold for two of the four fiscal years preceding January 1, 2025, must register by January 30, 2025. Registration is required by April 30 of the relevant fiscal year for those meeting the threshold later. Registration must be completed by the designated Filing Constituent Entity (CE) for all Bahrain entities in the group. Joint ventures and their subsidiaries must register separately. Excluded entities, while providing information, cannot act as the Filing CE. Furthermore, the Bahraini NBR’s portal now allows registered taxpayers to access the DMTT registration functionality. The application requires details on the Ultimate Parent Entity, Bahrain Constituent Entities, and financial disclosures, including DMTT relief. Constituent Entities may need to update records with the Ministry of Industry and Commerce (MOIC) to ensure accuracy. Advance tax payments must be made quarterly within 60 days of the quarter's end, with the first payment due by August 31, 2025. Payments can follow either the Prior Year or Current Year method, with the balance due within 15 months of the fiscal year's end. Tax returns must also be filed within the same timeframe using prescribed forms. The regulations mandate entities to retain documentation for five years and include adjustments for Financial Accounting Net Income or Loss (FANIL) and covered taxes. While detailed exclusions are outlined, simplified computation safe harbor rules will be issued through a ministerial decision. With DMTT effective from January 1, 2025, it is encouraged that in-scope MNE Groups act promptly to register, ensure compliance, and avoid penalties. #BahrainTax #DMTT #OECD #PillarTwo Stay ahead in the tax landscape with our Newsletter: https://shorturl.at/fnaVc. Get the latest GCC tax updates directly to your inbox!

Our Founding Partner, Thomas Vanhee, comments on the UAE’s new 15% DMTT in Khaleej Times On December 11, 2024, the Khaleej Times published an article discussing the recent updates made by the UAE Ministry of Finance (MoF) regarding the implementation of a Domestic Minimum Top-up Tax (DMTT) on multinational enterprises. Our founding partner, Thomas Vanhee, along with other tax professionals, shared his expert insights on the far-reaching implications of this transformative tax policy in the UAE. Thomas emphasized that the new DMTT applies to all companies operating internationally. On the other hand, domestic companies are excluded from the scope of the UAE’s DMTT. He also pointed out that a number of exclusions are included at the level of Global Anti-Base Erosion (GloBE) Rules. Notably, under Pillar Two legislation, exclusions apply to government entities, investment funds, real estate investment trusts and entities controlled by those companies or passive entities. Thomas further recalled that the GloBE Rules, including the DMTT, are part of an OECD/G20-led agreement endorsed so far by 145 countries, some of which have already begun implementing it in 2024. Because of the agreement’s global reach, Thomas predicted that, in the near future, almost all countries will likely have a bottom limit of 15% as the minimum Corporate Tax (CIT) rate. The UAE’s announcement follows the precedent legislation set by Bahrain and Qatar earlier this year, and we expect other Gulf nations to follow. Saudi Arabia, in particular, is expected to announce similar initiatives in the coming months. As the UAE continues to align with global economic dynamics, the introduction of the DMTT signals a pivotal shift in the nation’s corporate taxation strategy. This move is aligned with broader tax reforms across the GCC, reflecting a new phase in the region's approach to fostering transparency and competitiveness. For more details, please visit the article here: https://shorturl.at/yECj8. If you would like to know more about this news, you can find our previous post here: https://shorturl.at/NhuiA #UAE #CorporateTax #UAETaxPolicy #GlobalTaxReform Stay ahead in the tax landscape with our Newsletter: https://shorturl.at/fnaVc. Get the latest GCC tax updates directly to your inbox!

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UAE MoF announces a Domestic Minimum Top-up Tax on Multinational Entreprises in 2025. On December 9, 2024, the UAE Ministry of Finance (MoF) announced updates in relation to certain provisions of the CIT Law, namely the implementation of a Domestic Minimum Top-up Tax (DMTT) effective for financial years starting on or after January 1, 2025. With this move, the UAE is moving forward and aligning with the OECD/G20’s Pillar Two initiative on the Global Minimum Tax rules. The DMTT ensures large multinational enterprises (MNEs) with annual global revenues of €750 million or more pay at least a 15% tax rate on their profits. It applies to entities under the OECD’s Global Minimum Tax (GMT) framework, allowing the UAE to collect any additional taxes that would otherwise go to other countries under the Income Inclusion Rule (IIR) or Undertaxed Profits Rule (UTPR). In the UAE, the DMTT will apply to UAE operating MNEs with consolidated global revenues of €750 million (approx Dh3 billion) or more in at least two out of the four financial years immediately preceding the financial year in which the DMTT applies. This step fulfils the UAE’s commitment to the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, creating a level playing field for global corporations. This strategic reform not only solidifies the UAE’s position as a global business hub but also underscores its dedication to transparency and fair taxation practices. Lastly, the MoF also announced the introduction of tax incentives to support growth and innovation, including a research and development (R&D) incentive set to take effect for tax periods beginning in 2026. Businesses were invited to provide feedback in April 2024 during the public consultations satages. This incentive would be expenditure-based, offering businesses a refundable tax credit of 30% to 50%. The credit's value will depend on factors such as the scale of a company’s UAE operations and its revenue, aiming to stimulate innovation and bolster high-value economic activities. We expect further details to be published by the MoF in the following months. Reach out to us to help you navigate the complexities of the new DMTT! #UAEMoF #PillarTwo #CorporateTaxUpdate #GlobalTaxStandards Stay ahead in the tax landscape with our Newsletter: https://lnkd.in/e9WZVumE the latest GCC tax updates directly to your inbox!

Qatar Takes a Major Step Toward Implementing OECD Pillar Two Framework On December 5, 2024, Qatar’s Council of Ministers approved significant draft amendments to the Income Tax Law (Law No. 24 of 2018). These amendments mark a pivotal step in introducing the provisions of the OECD Pillar Two Framework into Qatar's tax system.  The Pillar Two Model Rules (also referred to as the “Global Anti-Base Erosion” or “GloBE” Rules) are meant to address the tax challenges posed by the digitization and globalization of the economy. Their goal is to ensure that large multinational enterprises (MNEs) with consolidated revenues exceeding EUR 750 million are subject to a minimum effective tax rate of 15% in every jurisdiction where they operate.  In line with the GloBE Rules, Qatar’s draft amendments specifically incorporate the Income Inclusion Rule (IIR) and a Domestic Minimum Top-Up Tax, aligning with global standards to implement the 15% global minimum tax for MNEs. This reinforces Qatar’s commitment to fostering a fair and transparent tax environment while contributing to international tax coherence.  Following the Council of Ministers’ approval, the draft amendments will proceed to the Shura Council for review before being submitted to His Highness the Amir of Qatar for final approval and enactment. Once approved by the Amir, the amendments will be published in the Official Gazette, after which the detailed provisions will become publicly available.   The Shura Council is expected to approve these amendments during its December session, paving the way for the new rules to take effect prospectively on January 1, 2025, in alignment with the discussions held during the public consultation phase.  Further, to ensure effective implementation, Qatar's General Tax Authority (GTA) is preparing a detailed resolution to provide clarity and guidance, reflecting the nation’s emphasis on transparency and collaborative policymaking.  With this development, Qatar joins Bahrain and the UAE in updating its legislation to incorporate the Pillar Two rules, demonstrating the region’s collective commitment to aligning with international tax standards.   Aurifer will continue to monitor these developments and provide timely updates as more details emerge.  #QatarTax #PillarTwo #OECD #TaxTransparency #GlobalMinimumTax #MNE Stay ahead in the tax landscape with our Newsletter:  https://shorturl.at/fnaVc. Get the latest GCC tax updates directly to your inbox!

OUR DECEMBER 2024 NEWSLETTER IS OUT Dive into the latest edition of our newsletter, where we spotlight the newest tax trends and changes across the GCC, with a special focus on updates from the UAE and the KSA. This month's focal point is the UAE, with a significant number of releases and publications, starting from amendments to the UAE Federal Decree-Law No. (16) of 2024, which sets out the legal framework for e-invoicing. Other relevant updates relate to the release by the UAE's Federal Tax Authority (FTA) of Public Clarification on the grace period to update information in tax records, along with the new UAE CIT return guide. The FTA further released a Public Clarification in relation to tax assessment review and updated tax procedures guide on Private Clarifications, extending its scope to UAE CIT. Noteworthy is also the publication of the UAE Ministry of Finance (MoF) of Ministerial Decision No. 261 of 2024, containing relevant updates on the treatment of partnerships and family foundations under UAE CIT. Meanwhile in the KSA, ZATCA released a Guideline on VAT Decision review and appeals in KSA. At an international level, we have deep-dived into the recent United States (US) elections and estimated the future impact of Trump's tax policies internally and globally. Our December 2024 newsletter is available with these updates and more! Happy reading! Stay ahead in the tax landscape with our Newsletter: https://shorturl.at/fnaVc. Get the latest GCC tax updates directly to your inbox! Don't miss our in-depth tax discussions on YouTube (https://lnkd.in/dkJRW8Hy) and instant updates on Twitter (https://lnkd.in/dA5Tc6ep). Join Aurifer's tax-savvy community today! #UAETax #AuriferMiddleEast #KSATax #TaxUpdate 

Happy UAE National Day! 🇦🇪 Team Aurifer joins the leaders and people in celebrating 53 years of unity, progress, and extraordinary achievements that have defined this remarkable nation. #UAENationalDay #UAE

Marhaba, Abu Dhabi! We are thrilled to announce the opening of our new office in Abu Dhabi, expanding Aurifer’s presence in the UAE! This marks an exciting milestone for Aurifer as we continue to grow and serve our clients with dedicated support and expertise across all taxes in the UAE and GCC. With the addition of our Abu Dhabi office, alongside our Dubai and Riyadh locations, we are strategically positioned to support businesses with customized tax and compliance services. We look forward to welcoming you to our new location and strengthening our partnerships in Abu Dhabi and beyond. #AuriferTax #AbuDhabi #NewOffice #CorporateTax #TaxExperts Stay ahead in the tax landscape with our Newsletter: https://shorturl.at/2u2jz. Get the latest GCC tax updates directly to your inbox!