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.