Saudi Arabia: Unified E-code Service Launched

Saudi Gazette, 14 January 2024: The Saudi Business Centre has announced it has launched the first phase of a Unified Electronic Code service.

The data of commercial registrations will be linked with municipal licences, tax certificates and civil defence permits at the Unified Electronic Code.

The service has been launched to provide the latest and most reliable electronic data of establishments and address the issue of clutter caused by establishments having to display their primary data certificates at their premises and branches.

It also aims to reduce the time spent in control and inspection operations.

It has been launched together with the Commerce Ministry, the Municipal and Rural Affairs Ministry and the Housing Ministry, the Zakat, Tax and Customs Authority and the General Directorate of Civil Defence.

Subsequent phases will cover all operational data and licences.

Business owners will be able to access the Unified Electronic Code service via the platform of the Saudi Business Centre easily.

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Saudi Arabia: Implementing Regulations to Contractors Classification Law Amendments Approved

Saudi Gazette, 6 January 2024: Saudi Arabia’s Municipal, Rural Affairs and Housing Minister has approved amendments to the Implementing Regulations to the Contractors Classification Law.

Saudi Arabia Ministerial Decision No. 4500465523/1445 repeals and replaces Saudi Arabia Ministerial Decision No. 4300274450/1443.

Under Saudi Arabia Ministerial Decision No. 4500465523/1445, a classification certificate will be issued electronically and will be valid for two years.

Project owners will have to verify the authenticity of these certificates through the Ministry’s website.

Article 4 of Saudi Arabia Ministerial Decision No. 4500465523/1445 specifies the areas, activities and grades of classification will be determined, modified, and updated by a Ministerial Decision.

The classification will cover various sectors including construction and building, operations and maintenance services, telecommunications and information technology, nutrition and catering, exhibitions and conferences and real estate development.

These fields and activities will align with the National Guide for Economic Activities.

The contractors’ classification certificate will be issued for the relevant field and activity or fields and activities along with the deserved grade, based on available information, data, and the points achieved in the evaluation.

Contractors will have to maintain commercial books and documents that verify the accuracy of their balance sheets and profit and loss accounts for the latest year.

They will have to be certified by a licensed accountant and filed in the programme.

These records should be well-organised and in Arabic. Contractors operating in the Kingdom must adhere to the terms and conditions stipulated in the Commercial Books Law

Article 9 of Saudi Arabia Ministerial Decision No. 4500465523/1445 states that contractors wanting to reclassify can submit a request to the agency within 90 days before their current certificate expires.

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Saudi Arabia: Implementation of Electronic Family Protection System Project Ongoing

Twasul, 18 December 2023: The Undersecretary of the Human Resources and Social Development Ministry with responsibility for Rehabilitation and Social Guidance has confirmed the Ministry is continuing to implement the electronic family protection system project.

The aim of the project is to allow reports of domestic violence and child protection infringements to be submitted.

It is also aimed at allowing cases to be managed by analysing data.

It is being implemented to offer various measures to follow up on abused person cases. This includes organising six programmes to help rehabilitate them, integrate them into society and empower them socially and psychologically.

For the full story, click here.

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Saudi Arabia: Civil Transactions Law Now in Force

Saudi Gazette, 17 December 2023: The Bureau of Experts at Saudi Arabia’s Cabinet has announced Saudi Arabia Cabinet Decision No. 820/1444 (the Civil Transactions Law) has come into force at courts across the Kingdom.

It has done so 180 days after it was published in the Official Gazette on 19 June 2023.

The Law regulates the provisions of contracts and financial transactions between individuals.

It also governs all civil transactions, unless there is a special law that regulates special transactions.

It covers definitions of natural and legal persons, things, funds, types of right, use of right and obligations in terms of personal rights such as sources of obligation, effects of obligation, descriptions incidental to the obligation, transfer of obligation and expiration of obligation.

It also deals with contracts, including contracts relating to ownership, contracts relating to benefit, contracts relating to work, partnership contracts, and guarantee and insurance contracts.

It details original real property rights and accessory real property rights and clarifies the jurisprudential rules.

It regulates the provisions of contracts and financial transactions in public daily life, such as contracts for sale, rent, and partnerships and sets provisions for compensation for damage in the event of an act by a person causing harm to others, such as damage to property or harm to an individual.

It also specifies the rules for determining the amount of compensation an injured individual is entitled to and outlines the rules and provisions that guarantee creditors the fulfilment of their rights from debtors.

It also balances the interests of creditors and debtors, regulates ownership provisions and clarifies the restrictions that apply to ownership, such as restricting the right of a neighbour not to use their right in a way that harms their neighbour.

It has been issued to promote the stability of transactions, reduce the reasons for invalidating or terminating contracts and expand contractual freedom.

Also reported in Okaz on 17 December 2023. Click here to read more.

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Saudi Arabia: E-payments in Public Benefit Markets Are Mandatory

Saudi Gazette, 11 December 2023: Saudi Arabia’s Environment, Water and Agriculture Ministry has announced it has issued guidelines to regulate the operation of public benefit markets and monitor the work of service providers.

Among other things, under the Agricultural Law using e-payments when buying and selling in public benefit markets is mandatory. The Saudisation rules also have to be complied with in line with government regulations. A licence has to be obtained from the Municipal, Rural Affairs and Housing Ministry as well.

In order to establish a new market in a city or governorate where there is an existing market, the new market has to demonstrate it has a comparative advantage over the existing market. The population in the area must also be proportionate to the number of markets wanting to establish in the city.

The capacity of the existing market must be insufficient to accommodate all activities as well.

When a new livestock market is being established, the fact they are outside the urban area must be taken into account.

When the market conforms to the previous standards, it is up to the Ministry to decide on the application.

An aerial photograph showing the location of the new market must also be attached to the application.

In addition, there are specific requirements for holding seasonal markets and auctions. These include that an entity that organises the market or auction bears all financial and organisational burdens. The seasonal market or auction must also not affect the movement and activity of the public goods market in the region.

All market stakeholders including wholesalers, retailers, distributors, service providers, cooperative societies and transporters have to register.

The relevant authority will determine the appropriate working days and hours for each market in the cities, governorates and their affiliated centres on regular and seasonal days such as Ramadan and Hajj.

A sign will also have to be placed clearly at the market entrances. This will have to indicate the operational days and hours as well as the days of the seasons, the name of the season and its start and end dates.

Agricultural product prices in the main markets in the Kingdom will be made through approved channels and platforms through the price controller assigned by the Environment, Water and Agriculture Ministry and its branches and offices.

Investors have to enter prices and quantity information through approved channels and platforms.

All market stakeholders have to place waste in designated places and waste containers and places exposed to pollution must be periodically cleaned and sterilised.

If the market is closed, air curtains will be put at the entrances. Insects, rodents, and stray animals will have to be controlled via mechanical and chemical methods and must not affect the safety of food products.

The Environment, Water and Agriculture Ministry will issue licences for shops, barns and stalls and permits for service providers and market workers affiliated with shops, firms and companies licensed to work in the market.

In terms of the transportation of agricultural products, quality and safety of agricultural products must be maintained.

Vehicle owners who fail to comply will be fined. Only healthy agricultural products should be permitted to enter and agricultural products which are unfit for human consumption should be destroyed.

Confiscated materials which are not fit for human consumption will be destroyed.

The Ministry will carry out periodic oversight of all stores, sheds, and barns on a daily basis and it is responsible for reporting visits and violations through approved channels.

Also reported in Al Riyadh on 10 December 2023. Click here to read more.

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Saudi Arabia: Zakat, Tax and Customs Authority Issues Final Tax Warning

Arabian Business, 3 December 2023: Saudi Arabia’s Zakat, Tax and Customs Authority has issued a tax warning about unpaid taxes.

The Authority had warned businesses to pay unpaid taxes before the end of the year or face being fined.

They have urged affected entities to take advantage of the Cancellation of Fines and Exemption of Financial Penalties Initiative, which ends on 31 December 2023.

Under the Initiative, taxpayers will be exempt from paying fines for late registration, delayed payments, overdue tax return filings, VAT return adjustments and violations of e-invoicing and general VAT provisions.

To be eligible for the Initiative, taxpayers must be registered, file all tax returns with the Authority and settle all outstanding tax returns.

Taxes owed may be paid in instalments if a request is submitted to the Authority by 31 December and outstanding amounts paid within the timeframe specified by the Authority.

Fines for tax evasion and fines paid before the effective date of the Initiative are not eligible.

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Saudi Arabia: Rights and Obligations of Public Transport Users Regulation Approved

Saudi Gazette, 25 November 2023: Saudi Arabia’s Transport General Authority or TGA has announced it has approved a regulation regarding rights and obligations of public transport users.

It has also approved the schedule of violations and fines. They have done so in line with Saudi Arabia Cabinet Decision No. 44/1445 on the same topic.

The regulation includes four sections covering all of the rights and obligations of public transport users in the Kingdom. Among other requirements, passengers have to give up seats for families with children.

Passengers will also be entitled to be offered options if their mode of transportation is delayed or cancelled for more than 120 minutes.

The carrier must provide passengers with several options. They should offer passengers the option of proceeding with their journey, rescheduling with alternative routes at no extra cost, or opting for a full ticket refund and returning to their point of origin.

However, the carrier will be exempt from liability and minimum compensation for delays in arriving at final destinations, when it is caused by circumstances beyond their control. This includes situations where adverse weather conditions jeopardise safe operations or when exceptional circumstances or force majeure events disrupt regular services, despite all reasonable precautions being taken.

Passengers can choose between a full ticket refund for the unused itinerary, accompanied by compensation equivalent to 25% of the ticket value for the cancelled trip, or exploring alternative travel arrangements within three hours of the original departure time. This alternative must be in a class equivalent to their initial reservation and compensation must be equivalent to 25% of the ticket value for the cancelled trip.

It aims to increase the level of awareness about the rights and obligations of beneficiaries.

The first section in the regulation includes the general provisions that apply to all means of transport covered under the regulation.

The second section covers land transport. The provisions spell out the rights and obligations of public transport bus users in and between cities. They also specify the rights and obligations of users in assisting and enabling disabled people and those with limited mobility to use buses.

The third section covers railway transport. They clarify the rights and obligations of railway users in and between cities. They also clarify the rights and obligations of users in assisting and enabling disabled people to use trains.

The fourth section covers maritime transport. They clarify the rights and obligations of users of maritime transport. They also clarify the rights and obligations of users in assisting and enabling disabled people and those with limited mobility to use maritime transport.

The tables of classification of violations and penalties also specify the obligations of bus users in and between cities, the obligations of railway users in and between cities and the obligations of maritime transport users.

Additional reporting from Gulf News (United Arab Emirates) on 25 November 2023.

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Saudi Arabia: Passenger Rights Protection Regulations Come into Force

Gulf News (United Arab Emirates), 20 November 2023: New passenger rights protection regulations issued by Saudi Arabia’s General Authority of Civil Aviation have come into force.

They cover ticketing, boarding, in-flight services, baggage handling and helping passengers with special needs, including those with reduced mobility.

Travellers could be compensated 6,568 Saudi Riyals for lost or damaged baggage.

Passengers whose baggage is delayed will receive 740 Riyals for the first day of delay and 300 Riyals for every subsequent day up to a maximum of five days.

Compensation provisions have also been strengthened and extended. Compensation of between 150 and 200% of the original ticket value could be awarded for flight delays, cancellations, overbooking and unexpected stopovers.

Passengers who are delayed for more than three hours can now disembark and receive compensation in line with the new regulations.

Passengers must also not be left stranded during unscheduled stops. Passengers will be compensated 500 Riyals each time they are.

Travellers who are on overbooked flights can expect refunds and compensations up to 200% of the original ticket value.

Those who are downgraded will be entitled to 200% compensation as well.

Airlines who deny a disabled passenger boarding or provide inadequate facilities will have to pay compensation of 500 Riyals or 200% of the original ticket price.

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