VAT Talks 20th of November 2017
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November 16, 2017
Written by:
Marcel Trost
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GERMELA Lootah Team Group Photo
GERMELA-Lootah Team

VAT Talk


UAE has published its draft executive regulations. Will this be a game changer for your business?

Germela - Lootah Law Firm invites you to join them at the their VAT Talk.

Details of the talk are:

Topic: Update on the implementation of VAT in the UAE and the GCC

Venue: Germela Lootah Level 17, Vision Tower, Business Bay, Dubai  Google Map: https://goo.gl/maps/9vFWRQtvRB92

Date: 20th of November 2017

Time: 8.30 am - 10.30 am

Language: English

Speaker: Mr. David Russell QC

RSVP to info@germela-lootah.com or csilla@germela-lootah.com

Photo Mr. David Russel (QC)

Mr. David Russell (QC), our tax expert from Outer Temple Chambers. David is an Australian barrister who specialises in international tax and currently practices in Dubai, Abu Dhabi, Sydney, Brisbane, Auckland, London and New York. David shall discuss the introduction of the VAT and Excise laws in Dubai and its implications on companies and individuals in the UAE. 

Mr. Russell has over 40 years of experience as a legal practitioner and currently practices in Dubai, London, New York, Abu Dhabi, Sydney and Brisbane. In the past he served as a President of the Taxation Institute of Australia and of Asia Oceania Tax Consultants Association.

Egypt's Movable Securities Law of 2015

First, a new Egyptian law governing the taking of security over movable assets was passed in November 2015 (i.e. the law no. 115 of 2015). The new movable securities law introduced the principle of non-possessory collateral security. Its broad scope includes movable assets as well as intangible assets such as receivables, credit notes and intellectual property rights.

According to the respective Executive Regulations, issued in December 2016, the Egyptian Financial Supervisory Authority will establish an electronic online-based registration system for all pledges established under the new law to be registered and published.

However, the registration of a pledge agreement is not mandatory and a lack of registration will not render the pledge void. Still, registration of a pledge will grant the creditor a secured first rank security over the pledged asset. Furthermore, the pledged asset will be excluded from the debtor's insolvency estate thus providing even better security to the pledgee, provided the respective pledge under the new law has been perfected and registered before the commencement of the insolvency proceedings.

Pledges over Movable Assets and Receivables in Turkey

In January 2017 the new Turkish law on movable property pledges in commercial transactions (i.e. the law no. 6750) entered into force. The new legislation's principal aim is to facilitate small and medium sized enterprises' access to financing solutions that come with little interference with business operations as well as minimal financial burden with regard to commercial collateral.

The two most important changes in the legal framework for commercial pledges pertain to its scope:

While formerly only financial institutions, sales enterprises operating on credit and cooperatives could act as a pledgee and only the owner of a commercial enterprise was allowed to enter into a pledge agreement as a pledgor, the new law substantially widens the personal scope of commercial pledges. Under the new law pledge agreements are namely divided into two distinct groups with regards to the personal scope. First, where a financial institution accepts a pledge as collateral, merchants, small traders, farmers, producer organizations and self-employed persons may act as pledgee. Secondly, merchants and small traders may enter into pledge agreements with each other. This means, that commercial pledge agreements are no longer restricted to contractual relationships vis-à-vis financial institutions, but can be utilized in an extensively broader spectrum.

The second amendment to the scope of commercial pledges deals with the assets that are qualified as pledgeable. Formerly, pledge agreements were strictly limited to specific assets such as commercial titles and trade names as well as local equipment assets. Under the new legal regime the scope of pledgeable assets includes all of the pledgor's tangible and intangible assets.

Turkey will also establish a new Pledged Movable Property Registry that will be responsible for the receipt and validation of the respective written pledge agreement as well as for registration, monitoring and facilitating an increased transparency of commercial pledges.

Simplifying the UAE's Procedures for Pledges

 The United Arab Emirates (UAE) have created a new legal regime regarding the pledge of movables as security for a debt which entered into force in March 2017 (i.e. the law no. 20 of 2016). As opposed to the situation in most other middle eastern jurisdictions, the notion of disembodied pledges as well as pledges over movable and intangible assets is not entirely new to the Emirates' jurisdiction. Pledge agreements with such scope had been introduced to the UAE's law in 1993 by the Commercial Transactions Law (i.e. the law no. 18 of 1993) already. Still, the new law makes commercial pledges easier to handle by broadening the scope of admissible assets significantly and simplifying the procedures for pledges.

The scope of the new law covers any movable asset, tangible or intangible, existing or in the future.

Furthermore, the most important procedural step for creating a pledge over and asset will be registration of the pledge with the Security Registry. Once this registry is established – presumably on an electronic basis – no execution of an agreement before a notary public will be necessary anymore, as it was under the Commercial Transactions Law.

Photo of Mr. David Russel (QC) talking
Mr. David Russell (QC) talking to people VAT
Group Photo of Mr. David Russel and attendees
Mr. David Russell talking to people VAT

Thank you! We will contact you shortly about more event details!
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