The government of the Kingdom of Saudi Arabia (KSA) joins in the effort to support and mitigate the effects the global pandemic caused by COVID-19 has on the businesses operating within the kingdom. For this purpose, the KSA government authorities have proposed a list of measures to be implemented in KSA for the following months.
The initiatives proposed include several measures taken by the General Authority of ZAKAT and Tax (GAZT) in KSA regarding zakat, income tax, withholding tax (WHT), value added tax (VAT) and excise tax return filings.
The measures include:
- The extension of the relevant filings for three months. The new filing deadline will be 30th June 2020;
- GAZT will issue any certificates solicited for 2019 without any restriction regarding filing;
- All fines imposed or due to be imposed for the period between 18th of March and 30th of June 2020 will be suspended;
- Payments of zakat and tax can be delayed until the new deadline of 30th of June 2020;
- Guarantees and cash advances normally due from corporate entities will be suspended until the 30th of June 2020;
- WHT returns have been extended for a period of 3 month (e.g. your payment was due on 10 April 2020. It is now due on 10 July 2020);
- Monthly VAT returns and payments for February, March, April and May 2020 have been postponed for a period of 3 months;
- Quarterly VAT returns and payments due on 30th of April 2020 have been postponed for a period of 3 months until the new deadline of 31st of July 2020( the second quarter will retain the original due date of 31st of July 2020);
- The VAT on import can de deferred using the system-enabled mechanism until 30th of June 2020 provided the respective amount is recognized during the same tax period when the import took place;
- Excise tax returns and payments for March and April 2020 only can be delayed until the new deadline of 15th of August 2020 (no extension will be applicable to the other reporting periods);
- Excise tax on import on a number of selected goods will be extended for a period of 3 months for goods imported between 18th of March and 30th of June 2020;
- GAZT has undertaken to expedite the revision and approval of refunds requests; and
- GAZT has undertaken not to enforce any suspension of service, financial seizures, impose penalties or fines.
Among the other measures put in place through the stimulus package by the KSA government authorities, we can observe:
- An automatic extension of 3 months of the Iqamas expiring between the 20th of March and 30th of June 2020;
- Refunds being granted for unused work visas or offering an extension of 3 months free of charge;
- The possibility to extend existing entry-exit visas of employees for a period of 3 months;
- Postponement of a number of government and municipality fees for a period of 3 months for the private sector.
The measures are aimed at supporting the business community in the KSA private sector. By facilitating the alleviation of the tax burdens of companies and offering support with Iqama and visa conditions, the KSA government authorities offer the much-needed relief for entities operating in the private sector.
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