Saudi Arabia: Tax relief measures in response to coronavirus (COVID-19)
Saudi Arabia: Tax relief measures, coronavirus
The Kingdom of Saudi Arabia announced measures targeted specifically to provide relief for taxpayers by easing tax return filing and tax payment requirements for a limited time in response to the coronavirus (COVID-19) pandemic.
The General Authority for Zakat and Tax (GAZT) introduced a general extension of three months for filing tax returns and payment the related tax for registered taxpayers. The extensions apply for Zakat, income tax, withholding tax, value added tax (VAT), and excise tax due for the period from 18 March to 30 June 2020 as follows:
- Tax/Zakat: Return filing dates will be postponed until 31 July for taxpayers with a December year-end, certificates will be issued without restrictions for the year 2019
- VAT: Return filing dates for VAT will be postponed until 30 June, 31 July, 31 August, 30 September for the February, March, April, and May periods.
- Excise tax: Payments due on goods imported during the postponement period can be delayed, but the importer must submit monthly temporary returns to GAZT.
- Withholding tax: Filing dates for submission of returns are now due on the 10th of July, August, and September for the March, April and May periods.
- Delay penalties: Taxpayers are exempted from late (delay) penalties for the submission of returns and the associated payments for all taxes (listed above) that fall due within the period starting from 18 March to 30 June 2020.
- Payments suspended: Penalties will not apply for payments of tax that are suspended.
- Refund payments: Refunds due to taxpayers are to be expedited.
For more information, contact KPMG’s Global Head of International Tax:
Rodney Lawrence | +1 (312) 665 5137 | firstname.lastname@example.org
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