Middle East Healthcare Co. (Saudi German Hospital) obtained approval from the General Authority for Zakat and Tax (GAZT) to redeem SAR 13.55 million in taxes paid for International Finance Corporation’s (IFC) share in the company’s profit.
An application was submitted to GAZT to exempt IFC from taxes, as per the articles of association of IFC, a member of the World Bank, as Saudi German and its subsidiaries used to pay income tax on IFC’s profit share, the company said in a statement to Tadawul on Monday.
IFC currently holds an 8.42 stake in Saudi German Hospital.
GAZT approved to refund SAR 11.7 million to Saudi German, SAR 1.7 million to the group’s subsidiaries Bait Al Batterjee and Zoheir Ahmed Al Sebai Medical Co., and the remaining SAR 120,000 for Abdul Jaleel Ibrahim Batterjee Sons Development.
Saudi German added that the tax redemption will be deemed as zakat liability paid in advance and will be deducted from its future zakat liability for the period between 2016 and 2018.
The company will pay no longer pay taxes for IFC’s profit share.