Our knowledge, experience, and expertise are now available on the go.
My Tamimi App, a convenient new tool for anyone with an interest in the legal sector, from law students to General Counsel.Find out more
Establishment of special integrated logistics zones
A new regulation has been issued by royal decree for the establishment of special integrated logistics zones to attract foreign investment into the Kingdom of Saudi Arabia (KSA).
The first zone will be located at King Khalid Airport in Riyadh with the General Authority for Civil Aviation responsible for the management, development and supervision of the zone and the regulation of the activities conducted in the zone. Further zones may be created at other airports by way of a resolution issued by the Economic and Development Affairs Council at the recommendation of the General Authority for Civil Aviation.
Special tax rules will apply to activities conducted in the zone related to goods. There will be various tax incentives available to businesses that operate in these zones including:
The General Authority of Zakat and Tax (GAZT) will issue rules related to the application of income tax to businesses operating in the zone.
GAZT issues general VAT guide
GAZT has published a general VAT guide which deals with various VAT obligations of taxpayers in KSA including VAT registration, issue of tax invoices, recoverability of input VAT and submission of VAT returns.
We will be happy to share our international experience on similar free zones and discuss the regulation on the establishment of special integrated logistics zones regulation in further detail.
In relation to VAT, businesses are being actively audited by GAZT. In our experience, many clients were not properly prepared for the introduction of VAT and encountered difficulties in implementing VAT in a very short period of time. As a result, clients have taken incorrect positions in their VAT returns and are liable for substantial penalties. It is recommended that you take a proactive approach and undertake a health check to identify and rectify these errors going forward to minimise any penalty and reputational exposure.
Al Tamimi has a strong and dedicated tax team and can help you with all your tax requirements across corporate tax, withholding tax, VAT, excise tax and customs. Please do not hesitate to contact us if you require any assistance.
Disclaimer: This chat service should not be relied upon as a substitute for professional advice which takes account of your specific circumstances and any changes in the law and practice. No warranty is made as to the accuracy or completeness of the information provided via this service and no liability is accepted by Al Tamimi & Company Limited, its affiliates, partners or employees for any loss arising as a result of reliance upon the information provided.
Kindly accept the disclaimer to proceed to a live chat.
Thank you for your inquiry. We will connect you to one of our agents now.
Thank you for your interest in working with Al Tamimi & Company. Please click here to view our latest job openings.