Saudi Arabia favourable amendment in Income tax law for Oil and Hydrocarbon sector

Posted on    06 July 2020
Saudi Arabia favourable amendment in Income tax law for Oil and Hydrocarbon sector

In the recent notification issued by the authority, an amendment has been made to Paragraph 'a' of Article 2 of the Saudi Income Tax Law. This exempts listed companies engaged in the production of Oil and Hydrocarbons owned by Non-Saudi persons from Income Tax.

Article 2 of The Act, lists out the persons who are subject to taxation. Previously, para 'a' covered a resident company w.r.t shares of Non-Saudi persons. After the amendment, companies engaged in the manufacture of Oil and Hydrocarbons will not be covered here.

This is a welcomed move by the Kingdom of Saudi Arabia in promoting the industries amidst the crisis. The General Authority of Zakat & Tax announced initiatives to mitigate the impact of COVID' 19 on the private sector in the Kingdom of Saudi Arabia. 

Source: https://english.aawsat.com/home/article/2337026/saudi-shura-council-approves-exempting-foreign-oil-companies-tax

You can access Law including Guidelines, Cabinet & FTA Decisions, Public Clarifications, Forms, Business Bulletins for all taxes (Vat, Excise, Customs, Corporate Tax, Transfer Pricing) for all GCC Countries in the Law Section of GCC FinTax. 



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