The Board of Directors of the Zakat, Tax, and Customs Authority “the Board”, based on the powers entrusted to it in article 5 of the regulation of the authority issued by Council of Ministers Decision 570 dated 22 Ramadan 1442 [4 May 2021], and based on clause 5 of Council of Ministers Decision 338 dated 23 Rabi Al-Thani 1445 [7 November 2023], which ensures that the Zakat, Tax, and Customs Authority issues—within 60 days from the date of entry into force of this decision—the tax rules for the entities that hold the activity of the “regional headquarters of international companies”, including all controls related to tax incentives, provisions for abuse, the identification of violations and penalties related to tax incentives, and the identification of the list of actual economic substance requirements in coordination with the Ministry of Investment, and the authority must verify that these requirements are met annually and hereby decides the following:
First
The Tax Rules for the Regional Headquarters are hereby approved in accordance with the form attached to this decision.
Second
This decision must be published in the official gazette, and comes into force on the date of its publication, and it must be communicated to whoever is required to implement it.
May Allah provide success.
Published in Umm Al-Qura 5021 issued on 23 February 2024.
Issued on: 18/7/1445
Corresponding to: 30/1/2024
Published in Umm Al-Qura 5023 issued on 8 March 2024.
Issued on: 18/7/1445
Corresponding to: 30/1/2024
Published in Umm Al-Qura 5019 issued on 9 February 2024.
The Council of Ministers,
after perusal in its session held under the chairmanship of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, of the Royal Court File 34740 dated 8 Jumada Al-Awwal 1445 [21 November 2023], which includes the Minister of Economy and Planning Telegram 4404945 dated 22 Dhu Al-Hijja 1444 [11 July 2023], regarding the final signed version of the draft economic cooperation agreement between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Latvia,
after perusal of the aforementioned draft agreement,
and after perusal of Council of Ministers Decision 52 dated 20 Muharram 1442 [8 September 2020],
after perusal of the Bureau of Experts at the Council of Ministers Memorandums 1232 dated 14 Rabi Al-Thani 1445 [29 October 2023] and 1980 dated 4 Rabi Al-Thani 1445 [17 December 2023],
after considering Shura Council Decision 97/11 dated 6 Jumada Al-Awwal 1445 [19 November 2023],
and after perusal of General Committee of the Council of Ministers Recommendation 6551 dated 20 Jumada Al-Thani 1445 [2 January 2024],
hereby decides
First
The Agreement between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Latvia on Economic Cooperation signed in the city of Riyadh on 18 Dhu Al-Qa’dah 1444, corresponding to 7 June 2023, is hereby approved in the form attached.
A draft royal decree has been prepared in the form attached.
Salman bin Abdulaziz Al-Saud
Issued on: 18/7/1445
Corresponding to: 30/1/2024
Published in Umm Al-Qura 5020 issued on 16 February 2024.