- Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has published a guideline for the Special Integrated Logistics Zone (SILZ).
- The SILZ aims to attract investments with added value to the national economy.
- Existing establishments within the Zone can engage in various activities such as maintenance, repair, import/export, and recycling.
- Tax relief period of 50 years is granted to entities licensed for Zone activities.
- Eligible income from Zone activities is subject to 0% tax for 50 years, while other income is taxed at the standard rate of 20%.
- Certain payments to non-residents during the tax holiday period are not subject to withholding tax.
- Goods imported into the Zone are temporarily exempted from customs duties and VAT if related to licensed activities.
- There are no special exemptions for zakat, excise tax, and real estate transaction tax.
- Transactions between establishments in the Zone and affiliated entities in the mainland must be reported as related-party transactions.
- Businesses operating in the Zone must fulfill their tax obligations as outlined in the Zakat Collection laws.
- Goods supplied from the mainland to the Zone are subject to suspended customs duties and VAT. Zero rate applies if the supplier is VAT-registered and the goods are related to Zone activities.
Source: premier-brains.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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