Welcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.Read the edition
On 31 January 2022 the UAE (“UAE”) Ministry of Finance (“MOF”) announced that the UAE will implement a Federal-level corporate tax (“CT”) for financial periods starting on or from 1 June 2023.
The introduction of CT in the UAE follows the proposal of a global minimum effective tax rate of 15% in 2023 under Pillar Two of the Organization for Economic Cooperation and Development’s (“OECD”) Based Erosion and Profit Shifting (BEPS) project and is in line with the UAE’s commitment to meet international standards for tax transparency and preventing harmful tax practices.
At the Emirates level, the UAE already has limited corporate taxes in place (which were not enforced in practice, except for upstream oil and gas companies) and specific taxes on branches of foreign banks. However, the introduction of a Federal-level CT is a major development in the country’s tax landscape that will affect most UAE businesses.
The UAE’s CT regime will incorporate best practices globally. The key features of the CT regime will be as follows:
The taxable income will be the accounting net profit of the business (which is based on amounts reported in financial statements prepared under internationally acceptable accounting standards), after making certain adjustments.
The introduction of CT in the UAE represents a radical change to the UAE tax landscape. UAE businesses should understand the CT rules and assess its implications in order to be compliant.
We will be publishing a more detailed analysis on the CT regime shortly.
Our multiple award-winning Tax team is here to help. With their expertise and significant experience of CT matters across the Middle East and all industry sectors, they are well placed to assess the impact of CT on your organisation and assist with your CT requirements in the UAE.