KSA's Tax Authority shared Income Tax Law Draft and Zakat and Tax Procedural Law Draft

The Zakat, Tax, and Customs Authority (ZATCA) recently shared the Zakat and Tax Procedural Law drafts, as well as the Income Tax Law Draft, on the Istitlaa Portal for public review until December 25, 2023.

The proposed amendments in these drafts aim to transform the tax landscape in the Kingdom by fostering transparency, boosting compliance, and supporting economic development. Here's a breakdown of the key improvements suggested:

Income Tax Law Draft:

•          Revision of withholding tax rates.

•          Introduction of special incentives.

•          Measures to address tax avoidance.

•          Refinement of residency rules.

•          Alignment with international standards.

 Zakat and Tax Procedures Law Draft:

This draft aims to establish a unified procedural system to enhance consistency and harmony in tax processes. Noteworthy provisions include:

•          Article 4: Grants the Authority access to information to enforce Zakat and Tax laws.

•          Article 9: Specifies record-keeping requirements for taxpayers.

•          Article 16: Outlines scenarios related to Zakat or tax avoidance.

•          Article 20: Grants taxpayers the right to challenge decisions issued by the Authority.

 These drafts intend to delineate the rights and obligations of both the Authority and taxpayers, fostering compliance, transparency, and a clearer set of guidelines to govern tax-related procedures.