From The Report: Saudi Arabia 2022
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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 (a payment under Islamic law that is used for charitable or religious purposes) is governed by the implementing regulations for zakat collection. The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, and the Zakat, Tax and Customs Authority regularly issues circulars and responses to frequently asked questions containing its interpretation or position on regulations. Corporate income tax is assessed on the share of profits of the foreign partner in the local company and a non-resident who conducts business in Saudi Arabia through a permanent establishment. This chapter contains a viewpoint from Tareq al Sunaid, Head of Tax, KPMG Saudi Arabia.