Tax
From The Report: Saudi Arabia 2019
View in Online Reader

Corporate income tax rules are governed by the Income Tax Law, which came into force in 2004. The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, a payment under Islamic law that is used for charitable or religious purposes. The General Authority of Zakat and Tax (GAZT) regularly issues circulars and responses to frequently asked questions containing its interpretation or position on regulations. The GAZT generally prefers to take a substance-over-form approach in dealing with tax matters. The GAZT often scrutinises transactions and challenges taxpayers if they view transactions as being motivated by non-commercial tax reasons. This chapter contains a viewpoint from Wadih AbouNasr, Head of Tax, KPMG KSA Levant Cluster.

Articles from this Chapter

Overview

Path forwards: Updated legislation guides zakat and taxpayers in navigating the regulatory framework
OBG
plus

Corporate income tax rules are governed by the Income Tax Law (Tax Law), which came into force in 2004. The Tax Law is supplemented by implementing regulations (by-laws). The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, a payment under Islamic law that is used for charitable or religious purposes. The General Authority of Zakat and Tax (GAZT) regularly issues circulars and responses to frequently asked questions containing its interpretation or position…

Viewpoint

Marked transparency: Wadih AbouNasr, Head of Tax, KPMG KSA Levant Cluster, on moving closer to alignment with global taxation trends
OBG
plus

Viewpoint :Wadih AbouNasr With the recent introduction of transfer pricing (TP) regulations, Saudi Arabia edges closer to the alignment with global taxation trends. As of February 15, 2019, the General Authority of Zakat and Tax (GAZT), issued the final approved TP By-laws. The by-laws are based on the OECD model and are an integral part of the base erosion and profit sharing initiative first announced by the G20 in 2015. The approval of the TP By-laws comes only a year after the introduction…