Saudi Aramco said that the income tax was amended in Q2 2020, whereby the shares held directly or indirectly in listed companies on the Tadawul by taxpayers engaged in oil and hydrocarbon activities are exempt from the application of the corporate income tax.
Accordingly, Saudi Aramco’s ownership in major petrochemical producer SABIC, Rabigh Refining and Petrochemical Company (Petro Rabigh), National Shipping Company of Saudi Arabia (Bahri) and Saudi Electricity Co. (SEC) are now subject to Zakat.
Zakat levy is based on adjusted income subject to Zakat or the Zakat base in accordance with the regulations of the General Authority of Zakat and Tax (GAZT), whichever is higher. Zakat is computed by using the Zakat base and the Zakat provision is charged to the condensed consolidated statement of income, Saudi Aramco’s H1 2020 financial statements showed.
Last June, the Saudi Cabinet approved amending Paragraph "A" of Article No. (2) of the income tax law, with respect to taxpayers.
As amended, the persons subject to taxation include a resident capital company with respect to shares owned directly or indirectly by non-Saudi persons, and 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.
Comments
{{DisplayName}}
{{ElapsedTime}}