On 15 February 2019, the TP bylaws were issued in their final form including the two following major amendments, together with FAQs (in both English and Arabic) as additional guidance:
As per the TP FAQs question no. 6, GAZT encourages the submission and documentation in the official language of KSA (Arabic), to the extent that this is reasonably possible.
The bylaws do not mention any provisions regarding penalties, although the FAQs explain that failure to comply with the TP guidance in KSA may lead to imposition of related penalties and fines applicable under the Income Tax Law.
KSA introduced significant changes to the country’s tax regime at the start of 2018, including VAT and the TP bylaws. The latter draws on many of the OECD TP reporting guidelines.
The new KSA tax developments will have significant reporting implications for all taxpayers including multinational companies, which will have to adopt significantly different reporting and filing requirements.
With this newsletter, we inform multinational companies on country-specific and international legislative documents and regulations.
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