Here’re the details of amendments to Saudi income tax law

Here are the details of the Saudi Cabinet’s decision issued last month, to approve the amendment to Article A/2 of the Income Tax Law, related to taxable persons.

After amendment, the Paragraph stipulates that the persons subject to taxation include the following:

(a) Resident capital companies with respect to shares owned directly or indirectly by non-Saudi persons and,

(b) Shares owned directly or indirectly by persons operating in oil and hydrocarbon production excluding:

-The shares owned directly or indirectly by persons operating in oil and hydrocarbon production in Saudi-listed resident capital companies and,

-The shares owned by these companies in capital companies.

Before amendment, the persons subject to taxation included the following:

(a) Resident capital companies with respect to shares owned directly or indirectly by non-Saudi partners.

(b) And shares owned directly or indirectly by persons operating in oil and hydrocarbons production.