ZATCA has published the Regional Headquarters Tax Rules (“RHQ Tax Rules”), approved and enacted by ZATCA’s board resolution no. (9-1-24) on 04/02/2024. Under the RHQ Tax Rules, RHQ licensed entities will enjoy the following tax incentives for a period of 30 years commencing from the date on which the RHQ license is issued: Any income derived by an RHQ entity that is not eligible for an exemption under the RHQ Tax Rules (such as income…
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 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,…
Over the course of past weeks, the General Authority of Zakat and Tax (ZATCA) has released a number of public consultations outlining the proposed amendments to a series of tax legislations. As an overall comment, this is a welcoming move and should be closely monitored as and when the proposed amendment is formally introduced in the relevant legislation. Below is a high-level summary of the proposed amendments to the relevant tax legislations in KSA. Consistent…
Clarity has been provided by the UAE Ministry of Finance on income generated by a UAE Free Zone Person that could be eligible for a 0% tax rate In brief Since the release of the UAE corporate tax law on 9 December 2022, UAE Free Zone Persons have been eagerly awaiting the release of the definition of ‘Qualifying Income’. The release of this information now enables UAE Free Zone Persons to determine if they are…