Commerce ministry publishes status correction regulations for anti-concealment law violators

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Saudi Arabia's Ministry of Commerce published the status correction regulations for the violators of Anti-Commercial Concealment Law.

The ministry granted violators an opportunity to correct their status, set the correction mechanisms and clarified the procedures for reviewing the correction applications.

It further confirmed that those who submit correction applications before 15/1/1443 AH will be exempted from the relevant penalties, including the payment of income tax retroactively.

The status correction options include the following:

- Partnership in the facility between a Saudi and non-Saudi, after fulfilling the regulatory requirements that enable the non-Saudi to enter as a partner in the facility.

- Registration of the facility ownership in the name of a non-Saudi, after the Saudi and non-Saudi agree to transfer the facility ownership to the latter provided that he fulfills the regulatory requirements that enable him to own the facility.

- The Saudi continues to practice an economic activity by introducing a new Saudi partner or a licensed foreign investor into the facility after fulfilling the regulatory requirements and registering the partnership with the Ministry of Commerce.

- The Saudi's disposal of the facility by selling, waiving, or dissolving in accordance with the regulatory procedures.

- Obtaining of privileged residency by the non-Saudi in accordance with the privileged residence regulations and completing the status correction.

The ministry indicated that whoever applies to correct his status in accordance with these regulations enjoys all the rights provided in the relevant regulations, including the right to residency and transport.

It added that the exemption stipulated in these regulations does not include those arrested for committing a crime or violation of the Anti-Concealment Law, before submitting the correction status applications, or those referred to the Public Prosecution or the competent court before submitting the relevant applications.

According to data compiled by Argaam, the National Program for Combating Commercial Concealment said that the corrective period granted to violators of the anti-cover-up law from Feb. 28, until Aug. 23, 2021.