The General Authority for Zakat and Income (Zakat and Income Tax). The Authority indicated that the added value is estimated at 5% of the total income that exceeds 375 thousand riyals annually, and the Zakat and Income Tax Authority has published the draft VAT system on its website, and the draft law contains 12 chapters and 77 articles, and this project will be effective from the beginning of January 2018.
The draft law contains 12 chapters and 77 articles. The law penalizes a person who fails to apply for registration within the time periods specified in the regulation with a penalty of 10,000 riyals, without prejudice to his payment of the tax due, and any taxable person who makes a mistake in his tax return is penalized by 50% of the value of the tax that was declared at a value lower than the value actually due.
The law also penalizes any taxable person who makes a mistake in his tax return by 50% of the value of the tax that was declared at a value lower than the value actually due. The system also penalizes any person who submits a request for a tax refund for an amount in excess of what he is entitled to, with a penalty equal to 50% of the excessive amount of the claim, while those who fail to pay the tax shall be penalized by the payment of one thousand riyals plus 5% of the unpaid tax if the delay does not exceed 30 days, 10% if the delay exceeds 30 days, 20% if the delay exceeds 90 days, and 25% if the delay exceeds 365 days.
Whereas, the bill states that there is a tax delinquency in the amount of tax paid by the taxpayer.
The draft stated that a number of goods and services will be exempted from the VAT system and supplies subject to the 0% rate will be determined according to the regulation.
The draft stated that a number of goods and services will be exempt from the VAT system and supplies subject to the 0% rate will be determined according to the regulation.
