Category Taxation in Saudi Arabia

Cigarettes and Soft-Drinks Taxes to Rise in Saudi Arabia

January 6, 2017 Taxation in Saudi Arabia

Cigarettes in Saudi ArabiaRIYADH – Prices of cigarettes in Saudi Arabia could double by April 2017, as the government sets out to enact heavy new taxes on selected goods.

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.

Howeve...

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Saudi Arabia Delays Remittance Tax

December 28, 2016 Taxation in Saudi Arabia

Remittance tax Saudi ArabiaRIYADH – Saudi Arabia may not implement its remittance tax as spoon as previously thought.

In a recent media interview the Minister of Finance of Saudi Arabia Mohammed Al-Jadaan stated that the previously proposed tax on remittance by non-residents in Saudi Arabia will be delayed.

It was recently proposed that any non-resident sending money out of Saudi Arabia will be taxed at a rate of 6 percent, if the individual has been living in Saudi Arabia for less than a year.

Any individuals who have lived in Saudi Arabia for more than a year will see a reduced tax rate, which would be capped at 2 percent for those in the country for five years or more.

The Minister added that the conditions of the tax are yet to be finalised, and it is possible that the measure could include exemptions for rem...

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Saudi Arabia Eyes Remittance Tax

December 22, 2016 Taxation in Saudi Arabia

Two FivesRIYADH – Saudi Arabia wants to cash in on the country’s expansive remittance market with a tax on residents sending money overseas.

On December 21st the Shura Council of Saudi Arabia debated a proposal to implement a tax on remittance of money out of Saudi Arabia by non-residents.

The proposed tax would see outward remittance taxed at a rate of 6 percent, if the individual ordering the transfer has been in Saudi Arabia for one year or less.

By the time that the individual has been residing in Saudi Arabia for 5 years, the tax would be dropped to a rate of 2 percent.

It is estimated that Saudi Arabia currently has the second highest volume of outward remittance in the world, with only the USA seeing more transfers.

The consideration of the new tax is a product of the attempts by the gov...

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Saudi Arabia Approves Tax on Empty Land

June 15, 2016 Taxation in Saudi Arabia

RIYADH – Prices of houses of Saudi Arabia could be fall by 50 percent following the approval of a new tax on undeveloped land.

The government of Saudi Arabia has approved sweeping reforms to the property sector in order to boost home-ownership rates and affordability, according to a release made by the Saudi press Agency on June 14th.

The main element of the announcement is a 2.5 percent tax on any undeveloped land plots in excess of 10 000 square meters which has been designated for housing or office development.

The tax is aimed directly at reducing the amount of land packing and speculative investment.

The government hopes that the tax will boost growth in the property sector from 4 percent to 7 percent, while reducing the average price of a house from 10 times the average gross sala...

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Saudi Arabia Looks At New Taxes

June 9, 2016 Taxation in Saudi Arabia

RIYADH – Saudi Arabia is looking to enact a raft of new tax measures in order to offset its reliance on oil.

Earlier this week the Minister of Finance of Saudi Arabia Ibrahim Alassaf announced that the government is looking a series of new measures aimed at raising new tax revenues and reducing reliance on oil revenues.

One of the key measures announced by the Finance Minister is a proposed tax to be levied on the earnings of non-residents, a move which could raise significant new funds, as approximately one third of workers in the country are non-residents.

In addition to the income tax, a new sales tax of 5 percent will be enacted over the course of 2018.

Extra taxes will also be levied on tobacco products, with further fees to be charged on airport arrivals.

The new taxes are intende...

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