Category Taxation in Saudi Arabia
April 18, 2017 Taxation in Saudi Arabia
The Shura Council of Saudi Arabia has given its endorsement to a new selective tax measure which will see harmful substances heavily taxed.
The new taxes will apply to carbonated drinks, energy drinks, and tobacco, in an effort to curb the spread of obesity and health problems.
The taxes are also intended to raise an extra SAR 10 billion in tax revenues per year, as part of the government’s plan to close it SAR 279 billion budget gap.
Upon approval of the new measure, carbonated sold in Saudi Arabia will face a tax burden of 50 percent of the sale price, while tobacco and energy drinks will face a tax of 100 percent of the sale price.
The new tax shall now be provided to th...Read More
March 28, 2017 Taxation in Saudi Arabia
The government of Saudi Arabia has now announced that it will retroactively reduce the income tax paid by oil companies operating in the country, although some experts believe that the move is intended to increase the interest in the IPO of the state oil producer Saudi Aramco.
Currently, oil producers in Saudi Arabia are charged a rate of income tax of 85 percent, which would now be reduced to a rate of 50 percent, applicable for all incomes from January 1st this year.
The rate of the tax will vary based on the amount of investment committed by each respective firm, with lower levels of investment seeing a higher rate, maxing out at the current level of 85 percent.
It is expe...Read More
February 22, 2017 Taxation in Saudi Arabia
On February 20th, the Council of Ministers of Saudi Arabia granted permission to the national Ministry of Finance to set a date for the implementation of selective taxes on cigarettes and soft drinks.
The new taxes are part of an agreement made by all the national of the Gulf Cooperative Council in 2015 to begin implementing a uniform tax system across the nations.
The tax measure was approved in Saudi Arabia in late 2016.
Saudi Arabia is the first country in the GCC to have gone so far as to allow their Ministry of Finance to set a date for the implementation of the selective taxes.
The taxes in question will see a 100 percent ...Read More
January 23, 2017 Taxation in Saudi Arabia
On January 22nd a spokesperson for the ministry of Finance of Saudi Arabia confirmed that the country would not be implementing a remittance tax, despite recent rumours claiming otherwise.
Over the last several months several government officials have proposed and discussed the feasibility of implementing a tax on any remittance sent from Saudi Arabia by individuals who are not citizens of the country.
The tax was expected to be set at a rate of approximately 6 percent for individuals who have resided in Saudi Arabia for less than a year, with the rate falling each year, to be capped at 3 percent.
Saudi Arabia is often regarded as having the second highest volume of ove...Read More
January 6, 2017 Taxation in Saudi Arabia
According to new information released by the official news of Saudi Arabia, the Saudi News Agency, the government has not yet implemented its highly punitive tax on tobacco and soft drinks.
The government plans to introduce a tax of 50 percent on the sale of all soft drinks sold in the country, with a raised tax of 100 percent if the drink is considered to be an “energy drink”.
Further, the government wants to levy a tax of 100 percent on the sale of tobacco products.
The taxes were first proposed in December 2015 during a meeting of the Gulf Cooperation Council, and were signed into law by the government of Saudi Arabia in late 2016.