The General Authority for Zakat and Tax (GAZT) has recently released their final Transfer Pricing (TP) bylaws. Following this major tax development, we have created a summary document with our initial set of views surrounding the applicability of the TP regulations in respect of exclusive distributorship arrangements in Saudi Arabia.
Throughout the document, Deloitte TP experts have provided their insight on key requirements and areas impacting exclusive distributors as listed below:
- Exclusivity of arrangements
- Dependent agency relationships
The bylaws apply to all taxpayers (i.e.“taxable persons”) and cover any transaction between related persons or persons under common control. It is therefore crucial for businesses to understand these rules and their impacts on exclusive distributors.