Global Tax Alert | 31 January 2017

Saudi Tax Authority postpones requirement to pay tax and zakat by one year

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As reported in a previous EY Global Tax Alert, Saudi Arabia’s General Authority for Zakat and Tax (GAZT) issued Circular Number 6768/16/1438 (the Circular) dated 4 December 2016 (5/3/1438H) requiring listed companies to pay tax and zakat based on the nationality of the shareholders as per the Tadawulaty System at the year-end date.

The General Authority for Zakat and Tax (GAZT) has now postponed the implementation of the above Circular by one year. The Circular will now be effective for the financial year ending 31 December 2017. Consequently, this new system shall no longer impact the tax and zakat returns for the financial year ended 31 December 2016.

The GAZT has also stated that it will provide further guidelines on the application of this Circular at a later date.

For additional information with respect to this Alert, please contact the following:

Ernst & Young & Co (Public Accountants), Riyadh
  • Asim Sheikh
    +966 11 215 9876
    asim.sheikh@sa.ey.com
  • Ahmed Abdullah
    +966 11 215 9439
    ahmed.abdullah@sa.ey.com
  • Franz-Josef Epping
    +966 11 215 9478
    franz-josef.epping@sa.ey.com
  • Hosam Abdulkareem
    +966 11 215 9805
    hosam.abdulkareem@sa.ey.com
  • Imran Iqbal
    +966 11 215 9807
    imran.iqbal@sa.ey.com
  • Nitesh Jain
    +966 11 215 9842
    nitesh.jain@sa.ey.com
  • Parvez Maqbool
    +966 11 215 9849
    parvez.maqbool@sa.ey.com
  • Sohail Nini
    +966 11 215 9825
    sohail.nini@sa.ey.com
  • Vladimir A Gidirim
    +966 11 215 9455
    vladimir.gidirim@sa.ey.com
  • Yousef Eldaw
    +966 11 215 9877
    yousef.eldaw@sa.ey.com
Ernst & Young & Co (Public Accountants), Al-Khobar
  • Syed Farhan Zubair
    +966 13 849 9522
    farhan.zubair@sa.ey.com
  • Javed Aziz Khan
    +966 13 849 9521
    javed.aziz@sa.ey.com
  • Jude deSequeira
    +966 13 849 9520
    jude.desequeira@sa.ey.com
  • Ali Sainudheen
    +966 13 849 9550
    ali.sainudheen@sa.ey.com
  • Hatem Ghobara
    +966 13 849 9524
    hatem.ghobara@sa.ey.com
Ernst & Young & Co (Public Accountants), Jeddah
  • Craig McAree
    +966 12 221 8501
    craig.mcaree@sa.ey.com
  • Ayman Abu El Izz
    +966 12 221 8400
    ayman.abueIzz@sa.ey.com
  • Irfan Alladin
    +966 12 221 8510
    irfan.alladin@sa.ey.com
  • Imran Ahmed
    +966 12 221 8414
    imran.ahmed@sa.ey.com
  • Mohammed Desin
    +966 50 006 7280
    mohammed.desin@sa.ey.com

EYG no. 00350-171Gbl