KPMG seminar alerts businesses on Corporate Income Tax, E-Invoicing

TDT | Manama                                        

The Daily Tribune – www.newsofbahrain.com   

A seminar hosted by KPMG in Bahrain has stressed the need for businesses here preparing for Corporate Income Tax and ‘E-Invoicing’, citing similar developments in the UAE and Saudi Arabia.

The seminar attended by over 120 senior business leaders, under the theme “The evolving Tax landscape in Bahrain and the UAE”, discussed the implication of the CIT on Bahraini businesses with operations and transactions in the UAE.

The UAE Ministry of Finance recently published the new federal CIT law which will be effective for the financial year commencing on or after 1 June 2023.

During the event, Wassim Chahine, Partner and Head of Corporate Tax, at KPMG Lower Gulf discussed the features of the UAE CIT, including Corporate Tax grouping, ability to carry forward tax losses, participation exemption, and Transfer Pricing laws.

He said: “The new law impacts Bahraini businesses that have operations and transactions in the UAE as well as Bahrain registered entities that may have their management and controls based in the UAE.”.

Shashank Chandak, Manager, KPMG in Bahrain, shed light on the National Bureau for Revenue’s (NBR) move exploring the implementation of ‘E-Invoicing’.

He said the NBR has requested proposals from consultants to assist with the legal framework and suggested to start preparing by conducting a gap analysis based on the KSA rules and general principles of E-invoicing.

Mubeen Khadir, Partner and Head of Tax and Corporate Services at KPMG, also viewed that Bahrain is likely to follow the footsteps of Saudi Arabia (KSA in the introduction of E-invoicing in the next six months with the possible implementation in 2024 or 2025.

“Once announced, this development will require significant changes to the existing ERP systems and deploying an E-invoicing solution to allow the issue of tax compliant E-invoices,” he said.

The seminar took place on 8th of March 2023 at the Downtown Rotana hotel.