There is a media release in the Kingdom of Saudi Arabia for supporting the business persons in the area of payment of taxes and filing of returns in UAE. The ministry of finance in the KSA is the one which has issued this release in the media. It has been done amid a global crisis in light of COVID-19 virus that has been declared as a pandemic by the WHO.
Key Reliefs Filing Returns and Payment of Taxes in KSA Due to COVID-19
The first relief is an extension of the deadline for filing tax returns, withholding tax returns, VAT and other taxes. The extension of the deadline is for a period of three months. This extension has been provided for making Income Tax payments, Zakat and VAT along with duties also. The tax certificates such as Zakat which had expired in 2019 will be reissued. While reissuing them, there won’t be any question asked. There will be no restrictions. The collection of customs duties on imports has been deferred for a period of three months. There are reliefs on expat levy, fees on work visas, exit and entry visas, municipal fees, etc. There are some conditions attached to such reliefs.
Deadline for Filing Objection and Appeal
It is not clear from the media release what the deadline for filing objection and appeal is in the changed circumstances. The General Authority of Zakat and Tax or GAZT and the General Secretariat for Tax Committees had issued a notification earlier about the hearing. The hearings by the Internal Settlement Committee and the Appeal Committee have been suspended. It is expected that additional guidelines will follow from GAZT.
The Ministry of Finance and GAZT have announced several steps to support the general economy of the country. These are related to corporate income tax, VAT, Excise duty, Customs duty, etc. The Ministry of Finance of Saudi Arabia has extended the deadline for filing of Corporate Income Tax. There are other measures also towards administration.
There is a three-month payment extension for VAT and excise duties. There is also an extension for the filing of returns. The collection of customs duties on imports has been deferred by three months. There is a need for submission of bank guarantee for this. There won’t be any Expat levy for residential permits. It is also extended for three months. During this period, it will be free. The employers are entitled to refund of fees that they had paid to obtain work visas for employees. These employees could not be used to work because of entry/exit prohibitions by the government. Employers will be given an extension of exit and re-entry visas which remained unused. The Ministry of Finance has also extended offer for the deferral of government fees and municipal taxes. There is an amnesty in force regarding default on tax payments and the fines won’t be imposed. There is an extension for the filing of Income Tax and Zakat.
Corporate Income Tax and Zakat certificates will be issued. There won’t be any restrictions. The companies will be allowed to renew their visas. They will receive payment for government work done by them. The application for payment in installments will be granted permission. There is a 3-month extension for the payment and VAT returns. There are extensions for the payment of excise duties also.
The government has made it known that it will support the private companies affected by COVID-19 threat through many extensions and exemptions. The government has announced a 50 billion package to cope with the crisis.
GCC Filings is a concern that extends professional services in book-keeping and taxation. It helps in the KSA filing of return of professional and personal income tax and payment of VAT charges.