Tax

Saudi Arabia’s economic growth has been driven by reforms in taxation and zakat (a payment under Islamic law that is used for charitable or religious purposes) systems, central to Vision 2030. Financial reporting requires annual audited statements filed with authorities, ensuring transparency and compliance. The financial services sector is regulated by agencies like the Saudi Central Bank and the Capital Market Authority, focusing on stability, anti-money laundering and financial technology innovation. Businesses must comply with accounting standards, including International Financial Reporting Standards, and register with the Ministry of Commerce. The Zakat, Tax and Customs Authority manages tax collection, including value-added tax, corporate income tax and zakat. New rules on e-invoicing and transfer pricing align with global standards. These reforms are designed to attract investment while promoting transparency, efficiency and long-term economic growth. This chapter contains a viewpoint from Mago JB Singh, Founder and Group Managing Partner, Just & Fair Consulting Group: a member of Baker Tilly International.

Articles from this Chapter

Overview

Transforming systems: Key regulatory changes impacting the business landscape
OBG
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In recent years Saudi Arabia has established itself as one of the strongest and most dynamic economies in the Middle East. Central to this has been the reformation of the tax and zakat (a payment under Islamic law that is used for charitable or religious purposes) systems, both of which are vital for the financing of public services and the realisation of Vision 2030. Updates are focused on economic diversification, including reduced dependency on oil revenue and private sector development. The…

Viewpoint

Embracing innovation: Mago JB Singh, Founder and Group Managing Partner, Just & Fair Consulting Group: a member of Baker Tilly International, on how technology helps businesses navigate regulatory changes
OBG
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Businesses across Saudi Arabia face an evolving and increasingly complex tax environment as the Kingdom continues to diversify its economy under Vision 2030. With the introduction of value-added tax (VAT) in 2018, the implementation of excise taxes and the forthcoming zakat (a payment under Islamic law used for charitable or religious purposes) and income tax reforms, the regulatory landscape is rapidly changing. In this context, it is important for businesses to consider tax technology not merely…