What can we expect from the second package of tax facilities? The second package of tax facilities will mainly focus on issues related to tax refunds, e-invoicing, and private sector support, a senior government source told us.

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AN OVERVIEW- The new package is primarily focused on resolving issues experienced by the tax community when it comes to following the VAT Law by introducing new facilities and removing hurdles facing businesses, Deputy Finance Minister for Taxes Sherif Al Kilani has previously told EnterpriseAM.

Where does it stand? The package will be up for public dialogue later this month, the source said.

REMEMBER- It first came to light in September of last year that the government is readying another tax relief package, one targeting the real estate sector, shortly after it unveiled the first package of tax facilities aimed at simplifying the tax system and easing the burden on taxpayers.

Under the latest round of facilities, some products will be exempt from invoicing, including agricultural crops, dairy products, and certain handicrafts.

Tax refunds, easier than ever: The package will simplify the tax refund process, delinking refunds from tax audit processes. The step aims to reduce the documents required for issuing a refund and accelerate taxpayers' access to their tax entitlements, according to the source. The government is currently updating the electronic system related to submitting tax returns, allowing taxpayers to complete procedures online easily while avoiding issues with uploading e-invoices.

A new mechanism to accelerate tax refunds: The government is also working on formulating mechanisms to address obstacles to the tax refund process, including tackling the issue of fraudulent invoices, which arise from the inability to identify the companies issuing these invoices, the source added.

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