Changing Transfer Pricing Landscape in the Kingdom of Saudi Arabia

On 20 March 2023, Saudi Arabia's Zakat, Tax and Customs Authority approved amendments to the Transfer Pricing Bylaws, introducing an Advance Pricing Agreement (APA) program. This program enables eligible taxpayers to obtain APAs, which are binding agreements between the taxpayer and the tax authority, establishing transfer pricing methodologies for related-party transactions. 

This article offers a comprehensive overview of the APA program, covering the eligibility criteria for obtaining an APA, the benefits it brings to taxpayers and tax authorities, the typical stages involved in the APA process, and more.