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08 December 2016

Saudi Arabia Tax Authority issues new requirements regarding tax and zakat returns of Saudi listed companies

Saudi Arabia's General Authority for Zakat and Tax issued Circular Number 6768/16/1438 on December 4, which requires listed companies to pay tax and zakat based on the nationality of the shareholders (per the Tadawulaty System) at the year-end date. The Circular is applicable to all financial years ending after its issuance. Therefore, this rule will apply to tax and zakat returns for the financial year ending December 31, 2016. Prior to the issuance of this Circular, Saudi listed companies were generally subject to zakat and tax based on their ownership as stated in the Articles of Association.

A Tax Alert prepared by EY's Global Tax Desk Network, attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-2087

Document ID: 2016-2087

 

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