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

On 9 September 2022, the governments of France, Germany, Italy, Spain and the Netherlands issued a joint statement to express their full commitment to implementing the GloBE rules that provide for a global minimum tax (Pillar Two).

Read the KPMG comments here

Excise tax guidance

In August 2022, the UAE Federal Tax Authority published a new User Guide on Excise Tax for Clearing Companies, focusing on Consumption, Import and Release transactions, and public clarification EXTP008 about the calculation of financial guarantees for the Excise Tax in Designated Zones. The FTA has also made minor changes to a number of existing Excise Tax guides.

Read the full Tax Flash here

Deadline for ultimate parent entity of MNE resident in Bahrain to file country-by-country (CbC) report  

The National Bureau for Revenue updated its country-by-country (CbC) reporting website to confirm that the ultimate parent entity (UPE) of a multinational enterprise (MNE) resident in Bahrain will be required to prepare and file the CbC report by 31 December 2022 for the financial year ended 31 December 2021.

Introduction of e-invoicing

The National Bureau for Revenue has (through the Bahrain Tender Board) invited comments to provide support with the review and enhancement of the legal framework for the launch of e-invoicing in Bahrain.

Reminder of final phase of digital stamp regime for tobacco products

The National Bureau for Revenue has announced that as of 16 October 2022, the final phase of the digital stamp regime will apply to all tobacco products in Bahrain

Read a September 2022 report prepared by the KPMG member firm in Bahrain

Rules for income tax exemption related to new businesses involved in economic diversification (COVID-19)

On 8 September 2022, Oman tax authorities (“OTA”) issued the rules and conditions for income tax exemption related to new businesses involved in economic diversification.

Read the full Tax Flash here

OTA amends the Oman VAT return format to report pre-VAT registration input VAT

The Oman VAT legislation allows taxpayers to recover pre-VAT registration input VAT, subject to specified conditions and approval by the OTA within a specified time. 

The OTA has amended the Oman VAT return format to add box 6(e) where taxpayers can report the pre-registration input VAT.  However, guidance on the following, among others, is still awaited:

1. Effective date of amendment of the Oman VAT return i.e. whether taxpayers can report in box 6(e) from the quarter ended September 2022.
2. Details to be reported in box 6(e) i.e. whether all pre-VAT registration input VAT or only eligible input VAT should be reported.
3. Form of approval expected from the OTA for the taxpayer to recover such input VAT i.e. whether the submission of return will be deemed as the OTA’s approval for recovery of reported pre-registration input VAT.

Announcement regarding updating the taxpayer communication data

OTA has made an announcement requiring the taxpayers to update their respective contact details by logging into OTA's portal (http://www.taxoman.gov.om/). The taxpayers are expected to provide an email id and a valid contact number as part of this request. Without updating these details, the taxpayers will not be able to log into OTA’s portal and access electronic services as provided by OTA (including undertaking various filings).

Read full announcement here

Excise tax compliance obligations for importers of energy and carbonated drinks, tobacco, “special purpose goods” 

Businesses that import or produce excisable goods and operators of tax warehouses are required to register for excise tax purposes following the introduction of excise taxes on the particular goods in January 2019.

Read the full Tax Flash here