Minister of Finance amends income tax deductions for international telecommunications services

Saudi Minister of Finance Mohammed Al-Jadaan

Saudi Minister of Finance Mohammed Al-Jadaan decided to amend Paragraph 5/63 of the Executive Regulations of the Income Tax Law issued under the Ministerial Resolution No. 1535 dated July 28, 2004, Umm Al Qura newspaper reported.

The paragraph after amendment states that international telephone services mean any sums paid to a non-resident entity in return for providing international telephone services in the Kingdom. The amounts paid for using the network of an international telecom company by a local operator to pass, transfer or deliver international calls made by a subscriber in the Kingdom, as well as the amounts paid to international telcos in return for international roaming services are not subject to income tax deductions.

 The decision is effective from the date of its publication on the official gazette.