Tax
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.

Articles from this Chapter

Overview

Clear framework: While the tax law remains the same, updated regulations and e-invoicing capabilities ensure the system stays up to date
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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 (a payment under Islamic law that is used for charitable or religious purposes) 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 Zakat, Tax and Customs Authority (ZATCA) regularly…

Viewpoint

A stable setting: Tareq al Sunaid, Head of Tax, KPMG Saudi Arabia, on recent developments in tax administration
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Viewpoint:Tareq al Sunaid Saudi Arabia is the largest economy in the region and the only Middle Eastern member of the G20. Therefore, the continued development and success of the Saudi economy are key to regional economic growth. The Kingdom continues to advance its social and economic transformation programmes within Vision 2030, despite the disruption of the Covid-19 pandemic. In some ways, the health crisis accelerated efforts to achieve fiscal stability and sustainable long-term growth.…