Tax
From The Report: Saudi Arabia 2018
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This chapter contains an overview of the tax framework in which local and foreign investors operate in Saudi Arabia including an explanation of the Value-added tax introduced on January 1, 2018, a summary of the parallel systems for zakat and corporate income tax, and a rundown of the taxation treaties in place to help promote foreign investment.

This chapter contains a viewpoint from Riyadh Al Najjar, Country Senior Leader, PwC Saudi Arabia.

Articles from this Chapter

Overview

By both books: The tax regime stems from law and supporting regulations, as well as religious duty
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Saudi Arabia is ranked 10th out of the G20 countries for ease of paying taxes, a notable achievement for a country with a GDP of over $650bn. With due care and commitment to compliance, businesses can enjoy the advantages of the Kingdom’s tax system. Although the current tax law was enacted in 2004, it is commonly referred to as the New Income Tax Law. And while the system is basic, it is not simple. Tax regulations are fairly brief and their provisions are relatively clear in respect to items…

Viewpoint

Skilled preparation: Riyadh Al Najjar, Country Senior Leader, PwC Saudi Arabia, on the introduction of value-added tax (VAT)
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Viewpoint:Riyadh Al Najjar VAT is a tax on the consumption of goods and services borne by the final consumer. Based on the self-assessment mechanism, VAT is collected by businesses at each stage of the production and distribution chain, with a credit for VAT incurred on inputs. VAT is generally seen as an efficient tax for authorities, neutral for businesses and transparent for consumers. Because of the deduction of any VAT paid on business purchases, VAT should not adversely impact enterprises.…