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‎ZATCA issues regional HQ guidelines

April 16, 2024
in Business
‎ZATCA issues regional HQ guidelines
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ZATCA issues regional HQ guidelines

Zakat, Tax and Customs Authority (ZATCA) issued guidelines for regional headquarters (HQs) in the Kingdom, to clarify the tax and Zakat provisions applicable to the activities of regional HQs.

The guidelines clarify the tax provisions and rules related to licensed regional HQs in the Kingdom, in addition to providing additional clarifications for the following:

1- Qualifications of regional HQs, including the mandatory and optional activities to be practiced.

2- Mechanism for registering regional HQs.

3- Current application of taxes to regional HQs in the Kingdom.

4- Tax incentives available to regional HQs.

5- International tax aspects and application of double taxation avoidance agreements.

6- Tax and Zakat procedures applied to regional HQs.

The guidelines clarified the tax incentives available to regional HQs, as the regional HQs that meet the qualification criteria issued by competent authority and the actual economic requirements referred to in the guidelines are granted the following tax incentives for 30 years, subject to renewal:

– Zero income tax on qualifying income from qualifying activities.

– Zero withholding tax on payments made by the regional HQs to non-residents, including dividends, payments to related persons, and payments to unrelated persons in exchange for services necessary for regional HQs’ activities.

The international obligations to which the Kingdom is a party apply to the regional HQs.

The guidelines also clarified the penalties and fines imposed on companies with a regional headquarters in the Kingdom when they do not comply with the tax laws. Non-compliance with the tax laws and regulations applicable in the Kingdom may lead to the imposition of penalties set by the competent authority.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Argaam EN – https://www.argaam.com/en/article/articledetail/id/1719897

Tags: businessissues‎ZATCA
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