Tax
From The Report: Saudi Arabia 2015
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This chapter contains an overview of the tax framework in which local and foreign investors operate in Saudi Arabia, including an outline of the various tax systems in place for different ownership structures and a look at the June 2014 updates to the regulations for zakat, a religious tax based on sharia. This chapter contains a viewpoint from Jacques Fakhoury, KSA Country Leader, PwC.

Articles from this Chapter

Overview

Maintaining stability: The tax system and regulations for potential investors
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Saudi Arabia takes third place in the global list of countries ranked by ease of paying taxes, a remarkable achievement for a G-20 country with a GDP of over $700bn. Yet with the necessary due care and commitment to compliance, businesses can enjoy the advantages of the system. The tax system in Saudi Arabia is basic but not simple. Tax regulations are fairly brief and their provisions are relatively clear in respect to items that they deal with directly. However, many areas remain open and subject…

Viewpoint

Ensuring control: Jacques Fakhoury, KSA Country Leader, PwC, on compliance
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Until recently, Saudi administration relied on the selfassessment of taxpayers. Very few tools and mechanisms were employed by the Department of Zakat and Income Tax (DZIT) to enforce compliance. While certificates for tax and zakat(Islamic alms) were key, they were the only effective instruments that forced firms to follow regulations, as without certificates they could not renew their investment licences, invite foreign workforce or collect receivables from contractors. However, there were no…