The regulation aims to establish a special logistics zone that attracts quality investments, in which a number of activities are practiced, including maintenance, repair, treatment, modification, development, assembly, storage, sorting, packing, repacking, packaging, trading, distribution, handling, use, import, export, re-export, value-added services, logistics services, after-sales services, and recycling of waste and e-waste.
According to the regulation, a special integrated logistics zone will be established with twenty articles. According to the regulation, a special integrated logistics zone will be established on the land of King Khalid Airport in Riyadh, and the establishment of any other special integrated logistics zone in one of the Kingdom's airports will be decided by the Council of Economic and Development Affairs based on a proposal from the competent authority.
The regulation stipulates that The regulation stipulates the following:
Article One:
The following words and phrases, wherever used in this regulation, shall have the meanings indicated in front of each of them:Wherever used in this regulation, the following words and phrases shall have the meanings indicated before each of them:
1. Zone: Integrated Logistics Special Zone.
Integrated Logistics Special Zone. <Organization: Regulation of the zone.
3- Competent Authority: The competent authority. <Competent Authority: General Civil Aviation Authority.
4- Bundling: The process of importing products with different customs items and assembling them to arrive at the final product and its customs item.
4- Assembly.
5- Minor manufacturing operations: Assembly, disassembly, assembly, installation, washing, engraving, testing and design operations, provided they do not result in a change to the customs heading.
5.
6- Goods: All products, goods, parts, materials, appliances, equipment, etc. of all types and forms imported or brought into the Zone, including those used for minor manufacturing, repair, maintenance, modification, alteration, change and development within the Zone.
7.
7. Other Goods: All that results from simple manufacturing processes, and that which is processed, repaired, modified, altered, changed and developed within the Zone.
8.
8- Principal Territory: The territory of the Kingdom of Saudi Arabia excluding the Zone.
9- Permanent Establishment: This term shall have the meaning assigned to it in the Income Tax Law promulgated by Royal Decree No. (M/1) dated 15-1-1425 AH.
9- Permanent Establishment: The territory of the Kingdom of Saudi Arabia, excluding the Region. <Non-Resident: This term shall have the meaning assigned to it in the Income Tax Law, promulgated by Royal Decree No. (M/1) dated 15-1-1425H.
11- Unified Customs Law: The Unified Customs System (Law) of the Cooperation Council for the Arab States of the Gulf, approved by Royal Decree No. (M/41) dated 3-11-1423 AH.
12- Value Added Tax: This term shall have the meaning assigned to it in the Unified Agreement on Value Added Tax for the Gulf Cooperation Council States, approved by Royal Decree No. (M/51) dated 3-5-1438H.
13- Supply: This word shall have the meaning assigned to it in the GCC Unified VAT Agreement, ratified by Royal Decree No. (M/51) dated 3-5-1438H.
14- Existing Establishment: Any company or branch of a company practicing within the region the activities referred to in Article (VI) of the Regulation.
Article II:
The regulation aims to establish a special logistics zone that attracts quality investments, in which the activities mentioned in Article (VI) of the regulation are practiced.Article Three:
Article Three:
1- The regulation establishes an integrated logistics special zone, to be located on the land of King Khalid Airport in Riyadh, according to the area and geographical location specified in the map accompanying the regulation.
2- The establishment of any logistics special zone shall be in accordance with the regulation.
2- The establishment of any other integrated logistics special zone in one of the Kingdom's airports shall be decided by the Council of Economic and Development Affairs based on a proposal from the competent authority, and shall be subject to the provisions of the regulation.
Article Four:
1- The competent authority is responsible for managing, developing and supervising the area and organizing the activities practiced therein, and has the necessary powers for this purpose.
2 The competent authority may entrust the management, development and supervision of the area or some of these works to the private sector.
3.
Article Five:
1- The competent authority - without others - may own land and assets located within the zone, and may - according to the controls it decides - grant utilization rights over them.
2- The competent authority - without others - owns the land and assets located within the zone.
2- The competent authority may - in accordance with the regulations it approves - provide all kinds of guarantees and undertakings.
Article Six:
Any of the following activities shall be practiced in the Zone - after obtaining the necessary licenses and approvals from the competent authority:Maintenance, repair, processing, modification, alteration, development, assembly and storage of goods.
1. Sorting, packing, repacking, repackaging, packaging, trading, trading, distributing, distributing, handling and using goods or other merchandise - including simple manufacturing processes - in any manner whatsoever.
2. <Importing, exporting and re-exporting. <Value-added services, logistics, and after-sales services. <Recycling of waste and e-waste.
Article VII:
1- Customs duties are not due - in accordance with the Unified Customs System - on goods and other merchandise, as they are in a customs suspension status.
2.
2- Goods and other merchandise are out of customs suspense once they are transferred from the zone to the mainland.
3- Goods and other merchandise are considered to be in customs suspension. <Goods and other merchandise temporarily transported to the Zone shall be deemed to be in customs suspension.
Article VIII:
1- VAT is not due on goods and other merchandise when they are in customs suspension.
2- VAT is not due on goods and other merchandise when they are in customs suspension.
2- VAT is not due on the supply of customs suspended goods - under Article (VII) of the regulation - unless the goods supplied are intended to be used or consumed for activities other than those stipulated in Article (VI) of the regulation.
3- VAT is not due on the supply of goods and other merchandise when they are in customs suspended status. VAT is not due on the temporary transportation of goods and other goods between the main land and the region for the purposes of repair, maintenance and after-sales services.
3- VAT is not due on the temporary transportation of goods and other goods between the main land and the region for the purposes of repair, maintenance and after-sales services.
Article Nine:
A non-resident practicing an activity directly related to the goods or other goods located within the Zone shall not be considered the owner of a permanent establishment in the Kingdom for the purpose of applying the Income Tax Law issued by Royal Decree No. (M/1) dated 15-1-1425H, subject to the controls and conditions issued by the General Authority for Zakat and Income in accordance with Article (10) of the Regulation.
Article Ten:
The General Authority for Zakat and Income shall issue the controls and conditions for the income tax applicable to establishments located within the Zone that carry out their activities within the Zone in accordance with the provisions of the Organization and the objectives of the Zone.
Article Eleven:
No financial restriction shall be imposed on enterprises located within the Zone with respect to borrowing from abroad, capital repatriation, transfer of proceeds and profits, payment of commissions and other similar payments.Article XI
Article XI
Article Twelve
1- The competent authority - without others - shall undertake the following:
Issue the necessary licenses and approvals for establishments wishing to practice the activities listed in Article (6) of the regulation, determine the financial compensation for this and collect it, provided that it is not less than the legally prescribed compensation, and has all the powers that enable it to do so.
B.
B- Supervising and inspecting the existing establishments within the zone.
2- The competent authority shall agree with the relevant authorities on the necessary arrangements regarding the implementation of what is mentioned in paragraph (1).
Article Thirteen:
In addition to writing its name on all prints, contracts, invoices, correspondence and publications, an establishment located within the Zone shall write the following:
1. That the establishment has been established or registered in accordance with the provisions of the regulation.
2- That the establishment is an existing establishment within the zone.
Article Fourteen:
1- The Ministry of Labor and Social Development shall grant the competent authority the labor visas necessary to achieve the investment objectives in the zone, in the sufficient amount determined by the competent authority.
2- The competent authority shall grant the necessary labor visas to achieve the investment objectives in the zone.
2- The competent authority shall coordinate with the relevant authorities to issue work licenses and residence permits for workers in the region.
3- The competent authority shall coordinate with the relevant authorities to issue work licenses and residence permits for workers in the region.
3- The competent authority may enable establishments in the region to benefit from the services of workers recruited under paragraph (1) of this Article, in order to achieve the requirements of those establishments.
Article Fifteen:
The movable property of enterprises located within the Zone, including intellectual property rights, shall not be subject to any restrictions on private property and shall not be confiscated except by judicial judgment.Article XVI
Article Sixteen
: The competent authority shall coordinate with the Ministry of Labor and Social Development to set the requirements and localization programs to be applied within the region in order to achieve the investment objectives in the region.
Article Seventeen:
The competent authority shall coordinate with the concerned security authorities within the airport lands to develop a comprehensive and role-specific mechanism for all security operations carried out in the region.The competent authority shall coordinate with the concerned security authorities within the airport lands to develop a comprehensive and role-specific mechanism for all security operations carried out in the region.
Article Eighteen:
In the absence of a special provision in the organization, the region shall be subject to the regulations and legislation in force in the Kingdom.
Article Nineteen
:Any regulation or regulation issued subsequently shall be without prejudice to the provisions and exceptions contained in the Regulation, unless expressly stated otherwise.
Article XIX
Article Twenty:
<The competent authority shall issue the executive rules and decisions of the organization, in coordination with the relevant authorities.Article Twenty-First:
The regulation shall be published in the Gazette
. The regulation shall be published in the Official Gazette and shall be effective from the date of its approval.
