Qatar's Cabinet approves VAT draft law

Taking another step towards the implementation of value-added tax (VAT) in Qatar, the

Cabinet gave its nod to a draft law on the proposed new levy and its draft executive regulation.Though a firm date has not been set, policy makers in the six-nation Gulf Co-operation Council (GCC) are aiming to introduce a 5% VAT at the start of next year.

During its ordinary meeting held at the Emiri Diwan, the Cabinet also approved a draft law on income tax and its draft executive regulation, as well as a draft decision of the Council of Ministers to issue the executive regulation of the selective tax law, the official Qatar News Agency (QNA) reported.

The Ministry of Finance has prepared the draft law on VAT in accordance with the unified GCC agreement on it.The agreement obligates each member state to take the necessary steps domestically for issuance of the relevant local law and procedural policies in order to implement the tax with a view to executing the agreement's provisions.

The draft law is expected to provide details on how Qatar will interpret the GCC framework and deal with key matters where it has discretion.

In principle, VAT will be levied on the supply of goods and services at a standard rate of 5%. According to experts, the new indirect tax will represent an important new source of revenue for Qatar and will be another action to move away from the economy being oil dependent.

Meanwhile, the draft legislation on income tax is meant to replace the Income Tax Law promulgated by Law No 21 of 2009 and Law No 17 of 2014, “which exempt the share of non-Qatari investors in the profits of some companies and investment funds from income tax”, QNA said.

It also falls within the “development framework of tax legislation to ensure the enhancements of revenues in the tax sector, simplification of procedures and facilitation of examination, connection and collection procedures, which in turn will promote tax compliance”.

The draft executive regulation of the selective tax law includes provisions concerning tax entitlement, declaration of loss or damage of selective goods, inspection of damaged goods, registration, tax declaration, rules of payment of tax in the case of local production, maintenance of accounting systems, the language of accounting records, and control and inspection rules.

HE the Deputy Prime Minister and Minister of State for Cabinet Affairs Ahmed bin Abdullah bin Zaid al-Mahmoud said the Cabinet also approved a draft decision of the Council of Ministers to amend some provisions of Decision No 18 of 2011 to nominate the chairman and members of the Tax Exemption Committee, organise its work and determine its rewards.

The committee is “competent to receive and examine requests for exemption from taxation and study the cancellation of previous exemptions granted due to breach of legal obligations or deviation from their purposes, and prepare recommendations on them”.

HE the Prime Minister Sheikh Abdullah bin Nasser bin Khalifa al-Thani chaired the Cabinet’s weekly meeting.

Regulatory standards for commercial and recreational drones in U.A.E

New regulatory standards for commercial and recreational use of drones have been endorsed by the Emirates Authority for Standardisation & Metrology, ESMA, including a surveillance system for detecting unmanned aerial vehicles in the UAE.

Dr Rashid Ahmed Bin Fahad, Minister of State, Chairman of ESMA Board of Directors, has stated that the new standards set for unmanned vehicles envisage a central system to monitor any drone operating in the UAE through a mandatory serial number that has to be used by potential manufacturers.

The mechanism is a stepping stone for a nation-wide federal database for such a type of aerial products, he added, during a company board meeting in Dubai on Sunday.

The new regulations will apply to both recreational and commercial usages, including free zones, he said, noting that both assembled and ready-for-use products have to comply with the new standards.

ESMA has developed the new mechanism in collaboration with the General Civil Aviation Administration, GCAA, the Telecommunications Regulatory Authority, the Federal Customs Authority, the Ministry of Interior and Dubai Police General Command with the objective of curbing any negative impact on the flow of air traffic and public, private and institutional property.

New public health law ensure safety for U.A.E employees

The upcoming public health law will ensure that good health and safety standards are set for employees in the workplace at all levels of service, health officials said on Tuesday.

Article 22 of the law - that is currently with the Cabinet for approval - will focus on health and safety of workers, including preventive treatments to improve their health, explained Dr Amin Hussein Al Amiri, assistant undersecretary for public policy and licensing at the Ministry of Health and Prevention.

The law will also upgrade the system of managing occupational safety, especially in regulating workplace injuries as well as managing risk assessment at the workplace.

Currently, the government bears the cost of treating 55 percent of non-communicable diseases (NCDs) among workers in direct costs. Productivity in 45 percent of employees is affected due to illness and disease.

Dr Amiri said that five main points affect a worker's health, including physical factors such as temperature and humidity; chemical factors including fumes and poisonous gases; biological factors such as viruses, parasites, germs and infectious diseases - for which the government has introduced annual pre-screening tests. The other two factors include psychological and social effects such as accommodation matters and relation with employers; and mechanical factors such as safety and cleanliness of buildings.

"Though the government already is handling these issues, the upcoming law will put a particular focus on these points," said Dr Amiri.

Aisha Al Suwaidi, executive director of human resources policies at the federal authority for human resources (FAHR), said the authority developed a workplace and safety guide for workers in a period of three years based on international benchmarks. "The guide lists health and safety measures for employees for all nature of jobs," she said." We want a culture of zero hazards, incidents or accidents and increase the productivity of an individual's performance to the maximum which cannot be done without a proper setup," she added.

The FAHR has trained 60 certified specialists who are acting as change agents and educating companies and employees on these guidelines. The officials were attending a workshop organised by the health ministry as part of the World Occupational Health and Safety Day on Tuesday in collaboration with the Arab Labour Organisation, the World Health Organisation (WHO) and the International Labour Organisation (ILO).

The Ministry of Human Resources and Emiratisation and the Federal Authority for Human Resources were also part of the event.

The workshop reviewed a legislation concerning the documentation of accidents and occupational diseases and effective mechanisms for data collection and analysis and systematic reporting. Dr Amiri said the government was developing laws and legislations to provide employees and workers with equal rights under the government's programme to attract skilled labour. Dr Amiri explained that both government and private establishments follow the national standards and guidelines adopted by the National Emergency Crisis and Disasters Management Authority.

5 factors that affect a worker's health

• Physical factors such as temperature and humidity
• Chemical factors including fumes and poisonous gases
• Biological factors such as viruses, parasites, germs and infectious diseases
• Psychological and social effects such as accommodation matters and relation with employers
•  Mechanical factors such as safety and cleanliness of buildings

U.A.E Residence visa never cancelled automatically

A common question asked by most of the employees in U.A.E, the residence visa expire on the date mentioned in the visa require cancellation. It is very important to keep in mind that a residence visa can expire and become invalid in time, but never automatically cancelled.

 All visas should be properly cancelled even if someone is leaving the UAE or able to stay on a tourist visa. They will face problems when attempting to re-enter the country on a visit visa. If visa not properly cancelled it is  not possible to obtain a new residence visa . 

If an employer or sponsor has not dealt with this, an individual can go to any main office of the Immigration Department in the relevant emirate, or the one where the visa was issued, with a passport to request cancellation. The charges should amount to no more than Dh250 including typing fees. The Emirates ID card must be handed over when the visa is cancelled as part of the process, as the identity card is linked to the visa.

UAE introduces new rules for expat driving licences

Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior issued Ministerial Decree for the year 2017 amending the Implementing Regulations of the Federal Law for the year 1995 regarding traffic laws.

Under the new law, Emiratis will have to renew their driving license every 10 years and expats every five years.

Other than amendments to driver's licenses, the law also says that motorists are not allowed to drive a motorbike without proper license and permit. The same goes for electric scooters, tricycles and quad bikes.

The law emphasised that electric scooters or and quads are for entertainment purposes only and as such allowed only in the the desert - with proper licensing.

Driving licences can be obtained by adult UAE citizens/residents after training from an authorized driving school in Dubai. If you are 18-21 year of age, you can apply for a probationary licence.
Criteria
If you have never driven before or have a driving licence that is not on the approved list of 36 countries then you must undergo training.
Documents Required
Passport (original & copy) with residence stamp, No-Objection Certificate from employer & 8 photos.