Page 17 - ICAI UAE TAX UPDATE_APRIL 2024

Saudi Arabia • Immigration perks, like exemption from the quota
system for hiring Saudi nationals.
Increasing number of ZATCA Indirect Tax Audits
• A 10-year exemption from the “Saudization”
ZATCA, the Zakat, Tax, and Customs Authority in Saudi requirement.
Arabia, has recently launched a series of tax audits, with
a specific focus on Value Added Tax (VAT) and Real Estate • Work permits for spouses and extension of dependent
Transaction Tax (RETT) compliance to increase revenue. age to 25.
Larger taxpayers can anticipate audits every 1 to 3 years.
• Waiver of professional accreditation requirements.
Tax audits by ZATCA can be initiated due to regular
examinations of tax returns or VAT refund requests. • Expedited visa issuance and exemption from visa
The Draft Zakat and Tax Procedures Law may introduce limits.
penalties for incorrect refund requests, underscoring
the need for strict compliance. • Comprehensive services covering business, personal,
and concierge needs.
During audits, ZATCA typically requests financial
statements, trial balances, sales and purchase listings, • Additional incentives available in the King Abdullah
and sample invoices and credit notes. Taxpayers should Financial District special economic zone since early 2022.
ensure their responses are complete and relevant,
avoiding unnecessary information that could lead to
further queries. Cancellation of Fines and Exemption of Penalties
Initiative
RETT audits are also becoming more common, focusing
on aspects like tax base calculation, evidence retention Zakat, Tax, and Customs Authority (ZATCA) reminds
for exemptions, and timely tax remittance. Given the taxpayers to benefit from cancellation of fines and
complexity of some real estate transactions, seeking exemption of penalties initiative, which is scheduled to
rulings from ZATCA based on specific scenarios can expire on 30 June 2024.
provide valuable evidence during audits.

Regional Headquarters Programme (RHQ) in Saudi
Arabia

The RHQ Programme by the Ministry of Investment
in Saudi Arabia (MISA) aims to attract multinational
organizations to establish their regional headquarters
in the Kingdom, positioning it as a leading investment
and commercial hub in the Middle East. The programme
offers various benefits and incentives to encourage
companies to set up their base through MISA in Saudi
Arabia.

The RHQ Programme in Saudi Arabia, part of the
Vision 2030 strategy, aims to attract multinational
organizations to establish their regional headquarters
in the Kingdom. The number of RHQ companies has
increased significantly each year, with 180 established in
2023. With a target of 480 RHQ companies aligned with
Vision 2030 goals, the program is on track to achieve its
objectives.

The policy offers broad incentives, including:

• Tax advantages, such as a 30-year corporate tax relief,
effectively reducing it to 0%. Bahrain
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UA E TAX UPD ATE NEWSLET TER ISSUE 01 - April 2024 ISSUE 01 - April 2024 UA E TAX UPD ATE NEWSLET TER