By Innovation-sa on November 17, 2019 in News
Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has revealed that the new zakat regulations amended by ministerial decree will only be applicable to Saudi and Gulf investors residing in the Kingdom and not to individuals. GAZT confirmed that it would apply the income tax on foreign companies and entities only.
The amended regulations, which are to be implemented in January 2020, aims to improve the clarity of the zakat calculation method for taxpayers holding commercial bills and for those who do not hold commercial bills, clarify the procedures related to zakat collection, improve drafting, standardization, and define the terms used in the regulation.
The amendments explain liability on insurance activities, keeping in mind its unique nature and objectives as well as contains regulations to aid the improvement of zakat account of financing activities and reduce disputes and complaints.
Moreover, the new regulations targets to build investor trust and confidence and eventually attract more companies by enhancing the collection procedure and improving transparency and efficiency.