On 5 December 2023, the Saudi government announced the tax regime that will be applicable to Regional Headquarter entities (“RHQs”). RHQs will effectively be given a tax holiday for 30 years and outward payments by the RHQ would be subject to nil withholding tax. Specific details have yet to be announced. The Ministry of Investment, in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA) announced a tax holiday package…
On 1 November 2023, the Board of the General Authority for Competition (“Authority”) announced that new financial thresholds would apply to determine whether a transaction is reportable to the Authority. By implementing such change, the aim of the Authority is to provide further clarity on the local nexus test required for a transaction to be notifiable to the Authority and to align the Saudi merger control regime further with international standards. This announcement follows the…
On 15 September 2023, several amendments to the Implementing Regulations to the Income Tax Law (the “IRTL”) and the Implementing Regulations for the Collecting of Zakat were published in the official Saudi Gazette (Umm Al Qura). The amendments came pursuant to the Minister of Finance Resolution No. (25) dated 08/01/1445H. Key observations The amendments to the RITL reflect the proposed changes published in May 2023 for public consultation. The amendments are as follows: In addition,…
On 3 September 2023, Ministerial Resolution No. 3568, dated 07/01/1445H (corresponding to 25 July 2023), which was issued by the Minister of the Ministry of Human Resources and Social Development (MHRSD) regarding the disclosure of training data, has come into effect. The Resolution provides that entities that employ 50 or more employees must annually declare training data on their Qiwa portal in accordance with the Resolution’s accompanying Procedural Guide. The Guide states that an entity…
In brief On 11 July 2023, the Saudi Authority for Data and Artificial Intelligence (SDAIA) published two drafts of regulations to the Personal Data Protection Law promulgated by Royal Decree No. M/19, dated 09/02/1443H, amended pursuant to Royal Decree No. M/148, dated 05/09/1444H (PDPL). The drafts were published for public consultation and will be open to public commentary until 31 July 2023. While the drafts are not binding, they do provide helpful insights with regards…