Welcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.Read the edition
The Royal Court has issued circular No. 26040 approving the TDRC Rules on 18 December 2019.
The circular clarifies the application of the rules to outstanding objections as well as the jurisdiction of the committees. According to the circular, taxpayers who had previously appealed to the Board of Grievances (“BOG”) and received a decision stating that the BOG does not have any jurisdiction to hear the case have 60 days from the effective date of these rules or the BOG Decision (whichever is later) to appeal to the Appellate Committee. In addition, the circular provides that the tax committees will also have jurisdiction to deal with disputes related to zakat assessments.
The key takeaways from the rules are as follows:
The publication of the TDRC rules is a welcome development and provides clarity in a number of areas that were previously uncertain. KSA taxpayers should seek to understand the impact of these rules on their tax disputes.
Previously, it was possible to refer a case to the ADRC after the submission of the objection to the TDRC. It remains to be seen whether this practice will continue or whether the ADRC’s role will be limited to negotiating a settlement before the case is referred to the TDRC.
In terms of immediate actions points, taxpayers that have pending objections outstanding at the GAZT level for more than 90 days may need to request the case to be transferred to the ADRC or submit an objection to the TDRC. Taxpayers that previously submitted an appeal to the BOG and the case was rejected on the basis of non-jurisdiction will be required to consider whether they would like to appeal to the Appellate Committee and submit this appeal within the permitted timeframe.
Please contact the Al Tamimi tax team if you have any questions in relation to the above or require any assistance with tax objections or appeals.