https://arab.news/wf4uj
- If it is settled between April and May, there will be 75 percent exemption of fines
RIYADH: A senior tax lawyer has praised Saudi Arabia’s decision to extend the tax amnesty for international companies to June 30.
The scheme, introduced in 2020, provides taxpayers with the opportunity to regularize their positions in relation to Saudi corporate income tax, withholding taxes and value-added tax.
“With the KSA General Authority for Zakat and Tax (GAZT) having become much more assertive on tax compliance over the past year, we have witnessed an increasing number of international taxpayers successfully using the scheme,” Ton van Doremalen, partner and head of tax in the Middle East at law firm DLA Piper, said in a statement.
As per the provisions of the amnesty scheme, if the tax is paid between January and March 2021, there will be 100 percent exemption of fines.
If it is settled between April and May, there will be 75 percent exemption of fines. And if the amount is not paid until June, the exemption is 50 percent.
According to DLA Piper, a “wide variety” of international businesses have used the amnesty scheme already, including overseas digital businesses selling services to Saudi customers, and international groups with a permanent office in the Kingdom.