Oman begins implementing value-added tax in April, excluding 94 food items

Oman begins implementing value-added tax in April, excluding 94 food items
Oman’s Ministry of Finance stressed that the implementation of this tax is estimated to generate over $780m, thus helping fill the budget deficit.  (File/Shutterstock)
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Updated 07 January 2021

Oman begins implementing value-added tax in April, excluding 94 food items

Oman begins implementing value-added tax in April, excluding 94 food items
  • Oman’s Ministry of Finance stressed that the implementation of this tax is estimated to generate over $780m, thus helping fill the budget deficit
  • Registration to the Tax Authority becomes compulsory if the taxpayer’s annual supplies stand at $100,000 or more or are expected to reach this ceiling

The Tax Authority today issued three executive decisions pertaining to the implementation of the Value Added Tax (VAT), which will enter enforcement stage by April 16, 2021, according to the Oman News Agency, which has revealed that 94 mostly food items have been exempted from tax.   

Oman’s Ministry of Finance stressed that the implementation of this tax is estimated to generate over $780m, thus helping fill the budget deficit. 

The first decision specified that registration to the Tax Authority becomes compulsory if the taxpayer’s annual supplies stand at $100,000 or more or are expected to reach this ceiling. 

The decision set the ceiling of voluntary registration to the Tax Authority at $50,000 and states that, accordingly, the taxpayer may apply for voluntary registration if the applicant’s annual supplies stand at, or cross or expected to go beyond the value of $50,000. 

Determining ceilings for compulsory and optional registration comes within the context of the provisions of the GCC Unified VAT Agreement, which the Sultanate signed in November 2016. 

The second decision states that taxpayers whose value of annual supplies crosses or is expected to cross $2,600 have to register to the Tax Authority during the period from Feb.1 2021 to March 15, 2021. Accordingly, the VAT for this segment becomes applicable from April 16, 2021. 

As for taxpayers whose value of supplies crosses or is expected to cross $1,300, their registration begins from April and the deadline of registration will be July 1, 2021. The deadlines of lower segments follow a similar slope (per volume of supplies) till the minimum level of $100,000 worth supplies. 

The decision grants taxpayers a right to register voluntarily to the Tax Authority with effect from Feb. 1, 2021 in case the value of their supplies crosses or is expected to cross $50,000. in order to ensure that the small and medium-sized business sectors that wish to register the VAT system are not affected, and can take advantage of the generated benefits, such as the refund of the tax right bore on their proceeds. 

The third decision specified the type of foodstuff exempted from the VAT. The list consists of 94 customs tariff items to be exempted from the VAT, namely meats, fish, poultry, dairy products, fresh eggs, vegetables, fruits, coffee beans, tea, cardamom, grains, olive oil, sugar, baby food products, bread, bottled water and table salt.


UAE’s Emaar Entertainment in $270m plan to expand cinema brand in KSA

UAE’s Emaar Entertainment in $270m plan to expand cinema brand in KSA
Updated 19 April 2021

UAE’s Emaar Entertainment in $270m plan to expand cinema brand in KSA

UAE’s Emaar Entertainment in $270m plan to expand cinema brand in KSA
  • The partners plan to invest about SR1 billion ($270 million) launching Reel Cinemas in Saudi Arabia over the next five years
  • The first outlet will be launched in Riyadh in December

RIYADH: UAE-based Emaar Entertainment, a unit of the developer behind Dubai Mall and Burj Khalifa, has entered into a partnership with Saudi Arabia’s GOSI Investment Ventures to expand its Reel Cinemas chain into the Kingdom.

“The partnership plans an aggressive expansion into the Kingdom’s entertainment market, which means reaching cinema fans no matter where they are in Saudi Arabia,” the companies said in a statement on Monday.

“Within the next five years, audiences can look forward to twenty new venues which will include both cinemas and family entertainment centres across the Kingdom.”

The partners plan to invest about SR1 billion ($270 million) launching Reel Cinemas in Saudi Arabia over the next five years. The first outlet will be launched in Riyadh in December.

The announcement comes just days after the third anniversary of the reopening of cinemas in the Kingdom.

The first cinema was opened in Riyadh on April 18, 2018, and the most recent opened last week in Hail with 10 screens and 1,309 seats, the Saudi Press Agency (SPA) reported.

During the past three years, 34 cinemas were opened in 12 Saudi cities. Eleven companies have opened 342 screens with more than 35,000 seats, with another 70 cinema outlets expected to open in the short term.

The SPA said around 12 million cinema tickets were sold in those three years, and the sector has created around 2,500 direct jobs.

Saudi Arabia’s first home-grown cinema chain, MUVI Cinemas, earlier this month announced a SR820 million expansion plan.

It intends to grow to 307 screens nationwide over the next 12 months, launching 23 new sites and adding 204 screens.

The expansion will initially see nine new sites in Riyadh, seven in Jeddah, and two each in Taif, Alkhobar, Khamis Mushait and Al-Kharj. Buraidah and Uniazah will soon welcome their first-ever MUVI locations.

MUVI CEO Sultan Alhokair said the company’s plan for 2021 “far exceeds” its original goals for the year.

“After seeing the potential opportunities across the Kingdom, and in light of the strong box office growth and market share obtained, we’re now confidently in a position to inaugurate 23 new locations — all of which will feature the world’s most cutting-edge cinema technologies,” he added.


Abu Dhabi’s G42 forms big data JV with Israeli defense company Rafael

Abu Dhabi’s G42 forms big data JV with Israeli defense company Rafael
Updated 19 April 2021

Abu Dhabi’s G42 forms big data JV with Israeli defense company Rafael

Abu Dhabi’s G42 forms big data JV with Israeli defense company Rafael
  • The joint venture will have a research and development site in Israel and will develop products for sectors including banking, health care and public safety

DUBAI: Abu Dhabi-based technology company Group 42 (G42) has formed a joint venture with Israel’s state-owned Rafael Advanced Defense Systems to commercialize artificial intelligence and big data technologies, the companies said on Monday.
The joint venture, called Presight.AI, will have a research and development site in Israel and will develop products for sectors including banking, health care and public safety, to be sold in Israel, the United Arab Emirates and internationally.
Israel and the UAE agreed to normalize relations in August, triggering a number of announcements from businesses stating their intention to cooperate across the two countries.
UAE Ambassador to Israel Mohamad Al-KHajja said the joint venture strengthened the relationship between Israel and the UAE and opportunities for bilateral economic growth.
G42 is an Abu Dhabi-based artificial intelligence and cloud computing company set up in 2018 which works with government and private clients. In September it became the first UAE company to open an international office in Israel.
UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan is its chairman and a shareholder. Abu Dhabi’s sovereign fund Mubadala in November invested in G42 and last week US private-equity firm Silver Lake invested to help the company expand.
G42 rose to prominence last year as it led Phase III clinical trials of a vaccine developed by Sinopharm’s China National Biotec Group (CNBG) in the UAE and regional countries, as well as offering medical diagnostic services.
The joint venture agreement is subject to regulatory approvals by Israeli and UAE authorities.


More than 1,000 Saudi businesses benefit from $586.5m in Monshaat funding

More than 1,000 Saudi businesses benefit from $586.5m in Monshaat funding
Updated 19 April 2021

More than 1,000 Saudi businesses benefit from $586.5m in Monshaat funding

More than 1,000 Saudi businesses benefit from $586.5m in Monshaat funding
  • Overall, the ‘Kafalah’ program has provided more than SR14.407 billion in 8,718 guarantees

RIYADH: The General Authority for Small and Medium Enterprises (Monshaat) has financed 1,130 SMEs with about SR2.2 billion ($586.5 million) over 15 months through the end of March 2021.
Overall, the ‘Kafalah’ program has provided more than SR14.407 billion in 8,718 guarantees, Monshaat told the Al-Eqtisadiah newspaper.
The Kafalah program was founded in 2006 as a joint initiative between the Kingdom’s ministry of finance and Saudi commercial banks to help overcome SME financing constraints.
Monshaat said that financing could reach a maximum of SR7.5 million and there is no minimal range for applicants.
Enterprise Support Centers also offer a package of programs to develop small and medium enterprises and entrepreneurs, the Authority added.
Support is also offered in the form of training and networking with other companies operating in a similar field.

 


PIF-backed Noon signs deal with UAE emirate to support small businesses

PIF-backed Noon signs deal with UAE emirate to support small businesses
Updated 19 April 2021

PIF-backed Noon signs deal with UAE emirate to support small businesses

PIF-backed Noon signs deal with UAE emirate to support small businesses
  • SMEs in Ajman will be able to promote and sell their products through the e-commerce’s company’s “Noon Mahali” platform

DUBAI: The UAE emirate of Ajman has struck a deal with online retailer Noon to support the growth of small businesses.
It will help members of the emirate’s Tazz program for small and medium-sized enterprises, as well companies that are signed up to the Riyada program for small business owners and e-commerce license holders.
“Through this cooperation, we aim to inspire innovation, encourage local entrepreneurs and assist in the SMEs’ digital transformation in the emirate,” Abdulla Bin Nassir Al-Nuaimi, Ajman DED’s director of planning and development, said.
SMEs in Ajman will be able to promote and sell their products through the e-commerce’s company’s “Noon Mahali” platform, which is specifically designed for them.
There will also be training sessions and other activities to guide sellers in making the most of Noon’s platform.
Al-Nuaimi said the private sector “has become a major partner and supporter of the government sector” in strengthening local businesses.
The move follows the UAE’s wider push to revitalize its SME scene as the country diversifies its income sources and encourage more economic activity amid a pandemic-induced slowdown.


Revenue management systems key to success of Saudi health reforms says KPMG

Revenue management systems key to success of Saudi health reforms says KPMG
Updated 19 April 2021

Revenue management systems key to success of Saudi health reforms says KPMG

Revenue management systems key to success of Saudi health reforms says KPMG
  • The Kingdom’s Ministry of Health (MoH) is transitioning from being an all-in-one payer, provider and regulator of health services to becoming a regulator

RIYADH: Robust revenue cycle management systems will be essential for Saudi Arabia’s new health care model, KPMG said in a report.
The Kingdom’s Ministry of Health (MoH) is transitioning from being an all-in-one payer, provider and regulator of health services to becoming a regulator, governing corporate payers and providers.
A key aspect of this transformation is the separation of the payer and the provider functions in the public health care sector, KPMG said. To facilitate future reimbursement to public health care providers, the Ministry of Health has set up the Program for Health Assurance and Purchasing (PHAP).
In addition, the Council of Cooperative Health Insurance (CCHI) has also firmed up regulations for private insurers.
With the introduction of mandatory health insurance underway in the public sector in the Kingdom and the wish to standardize across the public and private sector, Saudi health care providers will need to develop new capabilities to be able to generate revenue under the new reimbursement system, KPMG reported.  
“One of the key implications for health care providers of this introduction is the transformation of how health care service providers are reimbursed. Providers will primarily be paid on a per-patient basis, rather than via allocated budgets from the government,” said Emmeline Roodenburg, head of health care at KPMG in Saudi Arabia.
Patient acceptance and registration; billing and claims management; patient treatment and documentation; and coding and grouping are the four key operational elements of the Revenue Cycle Management (RCM) under the new mechanism.
While the risks that come with having a poor RCM function can be managed and mitigated, if they are left unchecked then the consequences could include revenue losses and fines for inaccurate invoicing, KPMG said.