As reported in a previous EY Global Tax Alert, Saudi Arabia’s General Authority for Zakat and Tax (GAZT) issued Circular Number 6768/16/1438 (the Circular) dated 4 December 2016 (5/3/1438H) requiring listed companies to pay tax and zakat based on the nationality of the shareholders as per the Tadawulaty System at the year-end date.
The General Authority for Zakat and Tax (GAZT) has now postponed the implementation of the above Circular by one year. The Circular will now be effective for the financial year ending 31 December 2017. Consequently, this new system shall no longer impact the tax and zakat returns for the financial year ended 31 December 2016.
The GAZT has also stated that it will provide further guidelines on the application of this Circular at a later date.
EYG no. 00350-171Gbl