AHK Legal Newsletter Vol. 3, No. 1, January 2018 Dear members, friends and colleagues, After concluding a very busy and successful 2017, I would like to wish you all a happy and most importantly a healthy and successful 2018. The AHK UAE and its offices in Qatar and Oman certainly had a busy and eventful 2017. We organized some 126 events for over 7000 participants in Abu Dhabi, Dubai, Oman and Qatar. The regional offices of the AHK UAE organized numerous trade delegations, trade fair participation and several other projects in close collaboration with German government institutions and helped German and local companies in the process of market access and market development. And in addition, in summer last year we moved our office to Business Bay. An important accomplishment was the successful introduction of the AHK Legal Network in the spring of 2017. We have been able to win seven law firms to become part of this network and I would like to thank all of them for their support and vital participations in our legal activities: Newsletters, Round Tables and events as well as for answering numerous questions and queries. In this spirit, we would like to continue our work and with your help it will hopefully be again a successful and eventful year. The first issue of the Legal Newsletter in 2018 will discuss the following topics (as shown below) For further information to any of these topics, please do not hesitate to contacts us. We are happy to forward your questions or comments. I wish you a compelling reading and hope to meet you at one of our legal network activities in the not too distant future! Felix Neugart CEO Implications of the value added tax regimes of Saudi Arabia and the United Arab Emirates on cross-border transactionsAs the first Gulf Cooperation Council (GCC) member states Saudi Arabia (KSA) and the United Arab Emirates (UAE) introduced value added tax (VAT) effective 1 January 2018. This initiative follows the joint afford of the GCC member states to implement a common VAT system. The GCC VAT Treaty remained vague on many aspects, thus leaving the individual GCC member states considerable freedom to shape their domestic VAT regimes. more Euler Hermes – Short and medium-term export financing in the Middle EastExport credit agencies play a pivotal role in supporting worldwide trade flows by offering various types and levels of cover for non-payment and other risks involved in the export of goods across international borders. As one of the world’s leading export nations, the Federal Republic of Germany operates its export credit insurance scheme through its agent (Mandatar), Euler Hermes Deutschland AG (Euler Hermes), which is based in Hamburg, Germany. more Dubai Tenancy Law – New Standard Tenancy ContractFrom 01.03.2017 onwards, the standardized tenancy contract drafted by the Dubai Land Department ("DLD") must exclusively be used when leasing any residential, commercial or industrial properties located in the Emirate of Dubai. During the summer of 2017, the DLD has enforced this obligation to such an extent that the failure to comply results in any other tenancy contract format being rejected for registration with the EJARI system, which - in turn - renders the subsequent registration of utility services or the application of residence visas impossible. more VAT in the UAE - Questions answeredOn 1 January, 2018, value added taxes ("VAT") have been introduced in the UAE. As could be expected, quite many people remain confused about what effect the introduction of VAT will actually have on them and how they are supposed to deal with it. While answers to many questions will only develop over time once a certain practice of the Federal Tax Authority ("FTA") has been established, some essential questions can be answered already. more VAT – Practical VAT Considerations regarding Designated Zones in the UAEThe United Arab Emirates and the Kingdom of Saudi Arabia were the only GCC states that have implemented Value Added Tax (VAT) with effect of 1 January 2018 as per the Unified GCC VAT Agreement from December 2015. The Implementation of VAT has been especially challenging in the UAE with regard to the treatment of free zones, some of which - so-called Designated Zones - are subject to special rules. This briefing gives an overview of practical cases of VAT application in Designated Zones. more |