The Official Gazette published the regulations Special Economic Zones in Jazan, Cloud Computing Zone, King Abdullah Economic City and Ras Al Khair, after the Cabinet approved them, in a move aimed at organizing the business environment within these zones according to special and independent rules.
Official Gazette published the regulations Special Economic Zones. According to the decision, companies licensed to carry out activities within the special economic zones are exempted from the provisions of the Companies Law, the Commercial Registry Regulations and trade names, giving them regulatory flexibility commensurate with the nature of these zones and their investment objectives.
According to the decision, companies licensed to carry out activities within the special economic zones are exempted from the provisions of the Companies Law and the Commercial Registry Regulations. The Cabinet decision stipulates that the Special Economic Zones and Cities Authority, in coordination with the Ministry of Commerce, shall issue the rules governing companies operating in these zones, including their governance, rights and duties, obligations and responsibilities.
Independent regulations for each zone
Special Economic Zone in King Abdullah Economic City:
The regulation includes 35 articles and comes into effect 90 days after the date of its publication. The first article identifies the concerned entity as Emaar Economic City Company.
Ras Al Khair Special Economic Zone:
Its regulation consists of 34 articles, and comes into effect 90 days after publication, with the Royal Commission for Jubail and Yanbu identified as the concerned entity.
Ras Al Khair Special Economic Zone:
Special Economic Zone for Information Cloud Computing:
Its regulation includes 31 articles, comes into effect after 90 days, and identifies the concerned entity as the Communications, Space and Technology Commission in coordination with the Royal Commission for Riyadh City.
Riyadh Special Economic Zone:
Jazan Special Economic Zone:
Its regulation included 34 articles, to be applied 90 days after publication, with the Royal Commission for Jubail and Yanbu as the concerned entity.
Royal Commission for Jubail and Yanbu.
Company Form and Nationality
The four regulations clarify that companies established within SEZs must take the form of a limited liability company, whether owned by one person or several, with the Cities and Special Economic Zones Authority issuing the rules governing this in agreement with the Ministry of Commerce.
The four regulations clarify that companies established within SEZs must take the form of a limited liability company, whether owned by one person or several people. Companies established in accordance with these regulations are considered Saudi nationals, and their headquarters must be located within the scope of the special economic zone.
Labor and Workers Regulation
With regard to supervising the implementation of labor and workers' provisions, the competent authority, in coordination with the Ministry of Human Resources and Social Development, shall follow up on the implementation of the regulations and take the necessary measures in accordance with the provisions of the organization and approved regulations.
Zakat and Taxes
The regulations grant licensed companies special tax treatment, as these establishments are subject to income tax in accordance with the applicable tax regulations, while the provisions of the Zakat collection system do not apply to them.Zakat and Taxes.
VAT and customs duties
Three regulations, the King Abdullah Economic City, Ras Al Khair and Jazan regulations - without the cloud computing zone - stipulate the application of zero percent VAT on goods supplied from the rest of the Kingdom to licensed establishments, as well as supplies between establishments within the same zone or between different special economic zones, provided that the goods are subject to customs suspension status and related to licensed activities.
Regulations of King Abdullah Economic City, Ras Al Khair and Jazan - without the information cloud computing zone - stipulate the application of zero percent VAT on goods supplied from the rest of the Kingdom to licensed establishments. Goods imported from outside the Kingdom to these zones are also considered outside the scope of VAT, provided they are subject to customs suspension and related to the activities of the licensed establishment.
With regard to customs duties, the same three regulations stipulate the suspension of duties on goods entering the licensed establishments and associated with their activities, when they are placed under one of the customs suspension modes according to the Unified Customs System, thus enhancing the attractiveness of these areas as advanced investment and logistics centers.
With regard to customs duties, the same three regulations stipulate the suspension of duties on goods entering the licensed establishments and associated with their activities.
