KSA Archives - Page 45 of 46 - LexisNexis Middle East

KSA: Saudi Arabia’s Shoura Council has approved the draft bankruptcy law

17/12/201711/12/2019
by Benjamin Filaferro

Saudi Arabia’s Shoura Council has approved the draft bankruptcy law. If approved, it will regulate bankruptcy procedures in the Kingdom. The draft law covers bankruptcy procedures in terms of preventive settlement and financial restructuring, especially of minor debtors and administrative settlement. It will apply to anyone involved in business or commercial activities in the Kingdom, including non-Saudi commercial and vocational companies and investors.

Weekly Spotlight

Weekly Spotlight: KSA long-term supply contracts which meet certain conditions will be treated as zero-rated for VAT

10/12/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on VAT developments in Saudi Arabia, where the Kingdom’s General Authority of Zakat and Tax has announced long-term supply contracts which meet certain conditions will be treated as zero-rated for VAT purposes. The aim is to provide companies with a grace period to renegotiate contracts which did not anticipate the introduction of VAT in the Kingdom on 1 January 2018. The grace period applies only to contracts which did not anticipate VAT in advance and not to contracts which include a term on VAT or a mechanism to amend prices to account for the tax. To benefit from the grace period, a contract needs to have been signed before 30 May 2017 and a customer has to be fully entitled to deduct input tax in respect of the supply of goods or services. A customer should also provide a written certification to the supplier that input tax will be deducted or refunded in full. The Authority added the first year of VAT implementation will be considered to be a transitional phase which is why it has announced this grace period. All supply contracts continuing after 31 December 2018 will be subject to VAT at the rate set by the Implementing Regulations.

The Authority has also issued more VAT guidance ahead of its introduction in the Kingdom on 1 January 2018. The Authority has clarified the invoicing obligations in this latest guidance. The Authority confirmed two types of invoices are outlined in the Implementing Regulations to the VAT Law. The first is a simplified tax invoice for the supply of goods or services which total less than 1,000 Riyals. In these types of transactions the invoice must include the issue date, the name and address and VAT identification number of the supplier. It must also contain details of the goods or services supplied, the consideration to be received for the goods or services and a clear statement of the tax payable or indication of the total payment (consideration) includes the tax in respect of the supply of goods or services. A simplified tax invoice may not be issued for an internal supply or exports. The second is for transactions exceeding 1,000 Riyals, which require a more detailed invoice under Article 53 of the Implementing Regulations. This invoice, which must be in Arabic as well as any other language, must include the date of issue of the invoice, the serial number identifying and distinguishing the tax invoice, the supplier’s VAT identification number and the customer’s VAT identification number (if the customer is responsible for the calculation of the import tax and a statement thereof). It must also include the date the supply was signed, the name and address of the supplier and the customer, the amount and nature of the goods supplied and the scope and nature of the services provided. Finally it must contain the amounts subject to tax or specifically exempt, the unit price excluding tax and any discounts or rebates if not included in the unit price, as well as the applicable VAT rate and amount due in Saudi Riyals.

News developments

KSA: Shoura Council is considering giving legal protection to whistle blowers

02/12/201711/12/2019
by Benjamin Filaferro

According to local newspaper reports, Saudi Arabia’s Shoura Council is understood to be considering giving legal protection to whistle blowers in certain circumstances. It comes as the authorities have launched an extensive crackdown on corruption in the Kingdom in recent weeks. The Council is understood to have approved a draft proposal to grant whistle blower protection for financial and administrative corruption.

News developments

KSA: New tourism visa plans

04/11/201711/12/2019
by Benjamin Filaferro

According to local newspaper reports, Saudi Arabia’s Government has approved new tourism visa plans. To begin with visas will only be issued to tourists using authorised tour operators. The announcement comes as the Kingdom looks to encourage more tourism.

News developments

KSA: MOJ has announced the Kingdom’s commercial courts have officially launched

28/10/201711/12/2019
by Benjamin Filaferro

Saudi Arabia’s Justice Minister, Walid Al-Samaani has announced the Kingdom’s commercial courts have officially launched. There are three commercial courts in the Kingdom and they are in Riyadh, Jeddah and Dammam. It is hoped they will encourage investment in the country in line with the Saudi Vision 2030. Specialist commercial chambers have also opened in the public courts in several Saudi cities.

News developments

KSA: Kingdom is going to establish the world’s first independent economic zone

27/10/201711/12/2019
by Benjamin Filaferro

Saudi Arabia’s Crown Prince and Deputy Prime Minister has announced the Kingdom is going to establish the world’s first independent economic zone. The Neom zone will extend across Egypt, Jordan and Saudi Arabia, will cost $500 billion and cover 26,500 square kilometres. It will focus on energy and water, mobility, biotech, food, technological and digital sciences, advanced manufacturing, media and entertainment. It will be open to private and public investors as well as partnerships and will be powered by renewable energy.

News developments

KSA: Confirmation that all companies will be subject to VAT if their annual revenue is at least 375,000 SAR

27/10/201711/12/2019
by Benjamin Filaferro

Saudi Arabia’s General Authority for Zakat and Tax has confirmed all companies operating an economic activity will be subject to VAT if their annual revenue is at least 375,000 Riyals. The Authority added all companies whose annual revenue exceeds a million Riyals should register before 20 December 2017. However, companies with annual revenue between 375,000 and a million Riyals can register by 20 December 2018.

Weekly Spotlight

Weekly Spotlight: Tax developments in Saudi Arabia

29/09/201711/12/2019
by Benjamin Filaferro

This week the spotlight is on tax developments in Saudi Arabia, where the Kingdom’s General Authority of Zakat and Tax has approved the Implementing Regulations to the VAT Law. It comes as the Kingdom prepares to launch VAT on the 1 January 2018. The Regulations set out the scope of taxation for certain goods and services, explain registration rules and eligibility of businesses for VAT, zero-rated and exempted supplies, the treatment of imports and exports, amongst other things. Decision of the Board of Directors of the General Authority of Zakat and Tax No. 3839/1438 was Gazetted in Saudi Arabia Official Gazette, issue 4689.

In a related development, the Authority also announced it has extended the VAT registration deadline for small businesses by an additional year. Businesses whose annual taxable supplies of goods and services do not exceed one million Saudi riyals will be exempt from the requirement to register by 20 December 2017. They will have until 20 December 2018 to register now. All businesses whose annual taxable supplies exceeded 375,000 Riyals had been told they were required to register for VAT. However, companies who have an annual taxable supply of goods and services over 187,500 Riyals can choose to register or not for input tax deduction.

Legislation

Read KSA Gazette, issue 4688, approving the Regulation concerning the non-disclosure of information for tax purposes

25/09/201711/12/2019
by Benjamin Filaferro

Saudi Arabia Official Gazette, issue 4688 contains various public and private pieces of legislation including Saudi Arabia Cabinet Decision No. 706/1438 approving the Regulation concerning the non-disclosure of information for tax purposes according to the provisions of the agreements to which the Kingdom is a party.

Read the gazette here:
http://www.lexismiddleeast.com/doc/4F475341554449343638385F31343338

News developments

Saudi Arabia’s General Authority for Zakat and Tax would allow VAT to be paid in instalments over 12 months

25/09/201711/12/2019
by Benjamin Filaferro

According to local newspaper reports, Saudi Arabia’s General Authority for Zakat and Tax is going to allow VAT to be paid in instalments over 12 months. This will be allowed if a person or entity being taxed presents evidence they are unable to pay the tax when due, or are suffering hardship from paying the charges in one payment. The taxable person must send a request to the Authority giving the reasons for inability to pay the tax by the due date. The Authority will confirm whether the request is approved or rejected within 20 days. The arrangement can be revoked at any time if the Authority considers it necessary to protect the public revenues or if the person fails to pay two instalments totalling 50% of the total owed.