Taxpayers in the Kingdom of Saudi Arabia (KSA) should be pleased to learn that the tax amnesty has been extended once again by the Ministry of Finance (MoF) through Ministerial Resolution (MR) No. 2303 dated 7/6/1442 AH (20 January 2021).
Key features
Taxes due paid |
Waiver of delay fines |
Exclusions
Deloitte’s view
The extension of the tax amnesty provides additional relief to taxpayers from the financial and economic impact of COVID-19. The amnesty provides a great opportunity to correct any past omissions, errors or mistakes. We recommend that prompt action is taken in order to benefit from the various waivers available under the amnesty.
We are in constant communication with the GAZT and shall keep you posted on further developments.
GAZT has approved certain amendments to the Real Estate Transaction Tax (RETT) Implementing Regulations. This relates to paragraph (a) of Article (3) and was published in the Official Gazette by the Ministerial Decision No. 2229, dated 7/6/1442H (the Decision).
The Decision has added the following two new cases to the list of transactions that are excluded from the scope of application of the RETT:
The Decision also added certain conditions to the exclusion related to the disposal of the property as an in-kind contribution by any person as the capital of the joint stock companies where the corresponding shares are not disposed of for a period of five years.
The United Arab Emirates (UAE) Federal Tax Authority (FTA) is understood to be restricting the use of form VAT301 (Import Declaration Form for VAT Payment) on the e-Services portal and that users who have a valid TRN and plan to use this form for settlements via their VAT returns, would not be able to use this option going forward.
We understand that the form is being removed in a phased approach and certain taxpayers have already been contacted by the FTA to inform them.
In order to continue to be able to import goods via Customs, taxpayers who are registered for VAT purposes, should ensure that their Customs Registration Numbers (CRNs) are linked to their Tax Registration Number (TRN). Alternatively, taxpayers will only be able to import goods via a clearing company that is registered with the FTA or only use form VAT301 to utilize the payment option.
We understand that going forward, the FTA will only allow the use of form VAT301 using the VAT settlement option, only for a number of specific users that need to obtain specific confirmation from the FTA.
This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.