ablcc_newsletter-4th-edition-2021_A5_04

35 BAHRAIN: VAT reforms In order to boost state’s revenues, Bahrain is about to double the value added tax to 10%, as Bahrain’s economy contracted by 5.4% particularly in the sectors of tourism and energy due the Covid19 Crisis according to the International Monetary Fund (IMF). The rise will take place by 1st January 2022. However, the reasons of this downturn are also structural and caused by the oil price shock of 2014-2015. Impacts on businesses will be multiple but the details of the future rules have not been published yet. However, it is already clear that companies will have to deal with the impact on their cash flow and will need to evaluate their long term “operations” whether on their various contracts after 1st January 2022 or the legal requirements regarding invoicing and declaration of correct “amount” of tax to settle to NBR (National Bureau for Revenue). Sources: https://www.reuters.com/world/middle-east/bahrain-could-double-value-added-tax- sources-2021-09-26/ , https://english.alarabiya.net/business/economy/2021/09/26/Bahrain-considering- doubling-value-added-tax-to-10-pct-Sources and https://www.pwc.com/m1/en/services/tax/me-tax-legal- news/2021/vat-rate-increase-in-bahrain-sep-2021.html Towards a digital future in the Middle Eastwith 5G Mohammed Amin, Senior Vice president for the Middle East, Russia, Africa and Turkey (MERAT) at Dell Technologies underlines that development of 5G networks has the potential to change the way city’s function and will affect every aspect of public life from transportation to safety, waste management to business or country infrastructure. Everywhere in the Middle East , 5G adopt ion and i ts implementation is targeted as it constitutes a crucial point for governments’ digital transformation agenda. As an example, we can cite the UAE, where the Telecommunications regulatory Authority (TRA), has targeted to achieve 100% 5G coverage by 2025 starting with the placement of frequency bands. Indeed, this move is not negligible. Better connectivitywill be the “backbone of smart cities and a new era for technologic innovation” according to M. Amin. Many cities in the Middle East are looking to capitalize on the benefits of this enhanced connectivity, but the first ones to benefit from the situation will be major business and tech hub. Read more: https://www.arabianbusiness.com/technology/455093-defining-the-digital- future