We have summarized below the key developments with respect to the KSA indirect tax landscape in the last few months:
- General Authority of Zakat and Tax (GAZT) has further extended the tax amnesty initiatives up to 30 June 2021 ( earlier timeline was 31 December 2020). The Ministerial Resolution provides for waiver of fines and penalties relating to tax returns and VAT return amendments in the following manner:
- Tax is fully paid by 31 March 2021, 100% of the fines will be waived.
- Tax is fully paid by 31 May 2021, 75% of the fines will be waived.
- Tax is fully paid in June 2021, 50% of the fines will be waived.
- The Board of Directors of the GAZT has approved the amendments to Real Estate Transaction tax (RETT) Implementing Regulations. These amendments broaden the scope of RETT exemptions are relevant Articles are excerpted below:
- Dispose the property as an in-kind contribution by any person as the capital of the joint stock companies, limited liability companies, joint companies or special (limited) partnership companies provided that the corresponding shares are not disposed of for a period of five years from the date of registration/owning the shares/units corresponding to the property. These companies has to maintain and keep audited financial statements from certified external auditor during that period. ( amendment in italics to the existing Article)
- Disposal of the property by a shareholder/partner in a company to the company’s name, provided that the property was booked in the company’s assets account before the Regulations entered into force and the disposer submits audited financial statements or a certificate from a licensed legal accountant proving the property is part of the company’s assets before the date on which the Regulations entered into effect until the date of disposal.
- Disposal of the real estate properties as an in-kind contribution by any person in the capital of a real estate investment fund upon establishing the fund in accordance with the rules and regulations of the Capital Market Authority. This exclusion does not include the funds that are established for the purpose of renting real estate properties
Source: الإعلانات (gazt.gov.sa)
