12 Oct
Benefit from VAT refund, FTA tells Expo participants
Dubai – Participants can apply for a refund for expenses in direct connection with Expo 2020.
Official participants in Expo 2020 can claim Value Added Tax (VAT) refund for taxes paid on goods and services connected with Expo 2020 Dubai, the Federal Tax Authority (FTA) said on Monday.
In a statement, the FTA said it has facilitated speedy processing of eligible Expo participants’ requests for registration, tax refunds, and prompt response to their inquiries. It has also enabled a direct communication channel with Expo 2020 Dubai to provide full support with advanced tax solutions. The FTA also offers telephone service designed to ease procedures and give priority to the registration of international participants.
Participants can apply for a refund for expenses in direct connection with Expo 2020, for example VAT incurred on the construction, installation, alteration, dismantlement of the exhibition space for the Expo 2020 or VAT incurred on goods and services for the operation, presentation and events within the Expo site as per a Cabinet decision.
“The FTA has been cooperating with all relevant authorities to prepare for a smooth and efficient implementation of the procedures for the refund of Value Added Tax paid on goods and services connected with Expo 2020 Dubai,” explained Khalid Ali Al Bustani, director-general of the FTA.
“The FTA has established a daily direct communication channel with the Expo 2020 Bureau of International Participants to enhance coordination and ensure fast processing of applications from participants in Expo 2020 Dubai, whether in regard to VAT registration requests by the participating countries, or processing of refund requests, as well as promptly responding to their enquiries,” said Al Bustani.
The FTA’s telephone service to facilitate and expedite VAT registration procedures for international participants offers clear instructions and details about the registration requirements, delivered by the FTA Registration Department. Priority is given to VAT registration requests from international Expo participants.
Al Bustani clarified that the FTA had already completed VAT registration processes for several participating countries, and the FTA processes the requests submitted through the electronic system of the VAT refund scheme for goods and services connected with Expo 2020.
“The FTA also processes special VAT refund requests, submitted through the integrated platform office, dedicated to receiving and processing requests by participants not registered for VAT. The integrated platform office will appoint a tax agent to review the special refund requests and forward them to the FTA on expo2020@tax.gov.ae to be reviewed by FTA experts,” Al Bustani said.
“The FTA is applying the mechanism for the refund of VAT paid on goods and services connected with Expo 2020 Dubai through transparent, accurate and facilitated procedures according to best practices,” he said.
“This comes as part of its contribution to the intensive efforts of all relevant bodies in the UAE to ensure the success of this international event, which began on the 1st of October 2021 with the participation of 192 countries. Expo 2020 Dubai is an important international platform for the UAE as it brings the world together for six months and embodies its vision of international cooperation,” said Al Bustani.
The FTA has issued a comprehensive guide for Expo participants, which addresses five categories of taxes that can be refunded. The first category is VAT incurred by official participants on goods and services in direct connection with the construction, installation, alteration, decoration, and dismantlement of their exhibition space. The second category is the VAT incurred by the official participants on goods and services in direct connection with the works and activities of organizing and operating the official participant’s exhibition space, as well as any presentations and events taking place within the Expo 2020 site.
Source:https://www.khaleejtimes.com/business/benefit-from-vat-refund-fta-tells-expo-participants
Dubai Financial Services Authority provides regulatory framework for future of finance
The DIFC is now home to more than 3,200 companies and nearly 28,000 staff, while the DFSA regulates 521 financial services firms
The Dubai Financial Services Authority (DFSA) continues to enhance its regulatory framework by focusing on the future of finance.
The DIFC is now the home of more than 3,200 companies and nearly 28,000 staff and within this wider population, the DFSA regulates 521 financial services firms, registers 17 auditors and 108 designated non-financial businesses. The total assets of the financial services firms are approaching $200bn. The pipeline of firms wishing to be regulated by the DFSA continues to grow.
Fadel Al Ali, chairman of the DFSA, said: “We are exploring and adopting innovative solutions to enhance our regulatory role, as part of our digitalisation drive.”
To encourage innovation in the DIFC and protect the market against risks, the DFSA set up the Innovation Testing Licence (ITL) Programme.
This year, 26 companies expressed interest in the programme and 17 of these were asked to submit an application; these are now being reviewed. Applicants include firms wanting to provide payment and money transmission services, wealth management, tokenised payment services, and biometric-enabled financial services.
The DFSA hosts RegTech events focusing on driving compliance through innovation. The most recent event highlighted the importance of this area and saw demonstrations from seven Reg-Tech providers in the area of cyber risk mitigation, data analysis, transaction monitoring, and eKYC. Cyber risk continues to be a concern for businesses across every sector, particularly the financial services industry that is often targeted. To foster a safe environment for firms operating within the DIFC, the DFSA launched the Cyber Threat Intelligence Platform (TIP) last year, the first regulator-led platform of its kind in the region, creating an information sharing system for firms in the DIFC. The TIP has over 175 registered members and continues to provide them with information about an average of over 100 new threats per week. Members of TIP also contribute to the platform, sharing their knowledge and expertise. This has been beneficial for the DFSA in terms of strengthening relationships with partners to collaborate on tackling a common threat.
Source:https://gulfbusiness.com/dubai-financial-services-authority-provides-regulatory-framework-for-future-of-finance/
22 Sep
Dubai creates new authority to improve business services, boost economic growth
Companies and individuals licensed in the economic zones under the authority are exempted from all taxes for 50 years.
A new economic zone authority will be established in Dubai, based on a law issued on Monday by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The new Dubai Integrated Economic Zones Authority — an independent legal entity with financial and administrative autonomy — will be supervising the operations of the Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai Commerce City, according to Law No. (16) of 2021.
Sheikh Ahmed bin Saeed Al Maktoum has been appointed chairman of the authority and Dr Mohammed Ahmed Al Zarouni as executive chairman.
The new law and appointment decrees will be published in the Official Gazette and are effective from January 1, 2022.
Sheikh Mohammed bin Rashid said the creation of the Dubai Integrated Economic Zones Authority was part of the emirate’s efforts to raise the speed and efficiency of services for businesses and investors. This, in turn, will help accelerate economic growth.
“The establishment of the Dubai Integrated Economic Zones Authority is a vital move to enhance Dubai’s global competitiveness and raise its investment attractiveness,” the Dubai Ruler said.
“Our objective is to make Dubai the destination of choice for global investors and a major focal point for global commerce.”
The initiative also seeks to consolidate the success of free zones in catalysing growth and adding value to the national economy.
Over 5,000 international firms, covering 20 key economic sectors and employing 30,000 employees from all over the world, will operate under the Dubai Integrated Economic Zones Authority. The economic activity that will be regulated by the authority generates five per cent of Dubai’s GDP.
Tax exemptions
Companies and individuals licensed in the integrated economic zones under the authority are exempted from all taxes — including income tax — for 50 years, effective from the date of the new law. This exemption period can be renewed for a similar period through a decision issued by the Dubai Ruler.
All subsidiaries of the Dubai Integrated Economic Zones Authority and companies or individuals licensed by the authority are exempted from restrictions on repatriation of capital, profits and salaries in any currency and to any destination outside its zones. This exemption is valid for 50 years, renewable for a similar period by a decision issued by the Dubai Ruler.
Furthermore, the funds of licensed companies and their employees will not be subject to nationalisation or restricted ownership.
Key priorities
“Our focus is on integrating government processes and facilitating greater access to global markets through an accelerated transition to a digital environment,” Sheikh Mohammed said.
One of the authority’s key priorities is to attract local and international companies to set up their headquarters in integrated economic zones of the emirate.
It seeks to promote Dubai’s economic competitiveness, especially in retail, technology, Islamic economy, e-commerce, industrial, logistics and shipping sectors.
It also aims to support SMEs and drive entrepreneurship and innovation across sectors.
The authority is tasked with creating, developing and managing the infrastructure and administrative services of integrated economic zones, and regulate business activities and services, including the import and storage of merchandise.
Partnership with private sector
Sheikh Mohammed highlighted that the private sector is a major partner in Dubai’s development journey over the next 50 years.
“We remain committed to strengthening our partnership with the private sector and making our business environment more attractive, both of which are key to sustained growth in our new phase of development,” the Dubai Ruler said.
The new law will support integrated economic zones in enhancing growth; diversifying investment opportunities; and improving the ease of doing business.
Source:https://www.khaleejtimes.com/business/dubai-creates-new-authority-to-improve-business-services-boost-economic-growth
02 Sep
India’s FTA talks with UAE ‘progressing fast’
Besides the GCC, India is conducting FTA-related talks with the UK, Australia and the European Union
India’s revived discussions for concluding a Free Trade Agreement (FTA) with the UAE and other GCC countries are “progressing fast” and will enable the country to become a global trading hub, according to Piyush Goyal, the Minister for Commerce, Industry and Consumer Affairs.
Addressing a large cross-section of India’s business through the platform of the Jain International Trade Organisation, Goyal cited the UAE specifically as among the countries with which his Ministry is engaged in talks towards reaching an FTA.
Besides the GCC, India is conducting FTA-related talks with the UK, Australia and the European Union.
The India-GCC FTA talks, which started in 2004, were suspended in 2008, but with the active involvement of the UAE, they were revived again recently as both countries expect to see the two-way trade crossing the $100 billion-mark in the coming years from the current $60 billion given the stronger bilateral engagements in the wake of state-level visits by leaders of both countries. However, now the UAE and India have decided to work on a separate free trade pact as it would not need as much coordination.
The UAE is still the third-largest trading partner of India despite a dip in both exports and imports in 2020-21 due to the pandemic. India’s exports to UAE last fiscal were valued at $16.7 billion while imports from the country were at $26.6 billion. Nearly 8.0 per cent of India’s oil is also sourced from the UAE.
Home to 3.4 million Indian expatriates generating the highest remittances from abroad, the UAE is also among the top 10 investors in India with an estimated $11 billion in investments, more than half of which is in the form of foreign direct investment (FDI).
Goyal said the pace of discussions has now gathered speed. Traders and exporters are the “twin pistons powering the economic growth engine of India. We firmly believe in the capabilities of the business community as well as of start-ups.”
The FTAs will enable India to become a global “trading hub,” Goyal hoped.
The Jain International Trade Organisation is conducting a 12-day virtual expo with the participation of several thousand businesses and entrepreneurs.
An Indian government official has said India had revived the FTA talks with the UAE, its third global trading partner, with expectations of a larger pact with the other GCC countries taking place subsequently.
“As the UAE has been very keen to advance an FTA between India and the GCC, which has been pending for a long time, the two countries decided to first go ahead and work out a deal amongst themselves,” the official was quoted as saying. The initial talks have started on a virtual mode.
He said the GCC is of both economic and strategic interest to India as it had emerged as one of the largest trading partners. Its substantial oil and gas reserves is also of great importance for the country’s energy needs. Moreover, it is a source of increased foreign investments into India.
In FY21, India imported goods worth $80.5 billion from GCC countries, while exports amounted to $40.5 billion. About half this trade is with the UAE.
A Framework Agreement on Economic Cooperation between India and the GCC was signed in 2004 that provided for both parties to consider ways and means to extend and liberalise trade relations besides initiating discussions on the feasibility of an FTA. Two rounds of negotiations were held —in 2006 and 2008. The movement of natural persons is one of the four ways through which services can be supplied internationally. It includes the movement of natural persons such as independent professionals and is of key interest to India in its global trade relations.
India stands to gain in services as well and could push for long-term business visas with the UAE, experts said.
“We have a geographic advantage with that region and a lot of business travel happens. Long-term business visas will be beneficial for India,” said an expert on trade issues.
Easier movement of professionals, called Mode 4 in trade parlance, could also be among India’s demands, the expert said.
Source:https://www.khaleejtimes.com/business/economy/indias-fta-talks-with-uae-progressing-fastrsquo
