Tax
From The Report: Saudi Arabia 2020
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Saudi Arabia’s income tax rules are governed by the Income Tax Law, which came into force in 2004. The Tax Law is supplemented by implementing regulations. Zakat, for its part, is governed by the implementing regulations for zakat collection. The Ministry of Finance issues resolutions concerning aspects of tax and zakat, and 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 takes a substance-over-form approach in dealing with tax matters. This chapter contains a viewpoint from Wadih AbouNasr, Head of Tax, KPMG KSA Levant Cluster.

Articles from this Chapter

Overview

Steady evolution: Updated regulations are put in place as basics remain unchanged
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Saudi Arabia’s 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). Zakat is governed by the implementing regulations for zakat collection (zakat regulations). The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, and the General Authority of Zakat and Tax (GAZT) regularly issues circulars and responses to frequently asked questions containing…

Viewpoint

Collective good: Wadih AbouNasr, Head of Tax, KPMG KSA Levant Cluster, on making the right choices for enhancing tax reforms
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Viewpoint:Wadih AbouNasr Direct and indirect taxation have been used to increase non-oil revenues and provide services for citizens. Whether it is corporate, individual income, sales, excise or value-added tax (VAT) or custom duties, the main objective is typically to increase revenue and, in some instances, change the behaviour of citizens. Excise taxes on tobacco and sugary drinks are meant to reduce the consumption of unhealthy products, and as a result, improve quality of life and lower…