ZATCA seeks public feedback on draft Income Tax Law

logo of Zakat, Tax and Customs Authority 

Zakat, Tax and Customs Authority (ZATCA) introduced a draft Income Tax Law for public review on the Istitlaa platform until Dec. 25, 2023. 

The initiative seeks to overhaul the Kingdom's income tax framework to align with global tax standards, support the Kingdom’s vision for foreign and domestic economic growth, and promote compliance and transparency in sync with international cooperative bodies, showcasing the Kingdom's leadership in global tax collaboration. 

The proposed income tax draft maintains the current taxpayer base, meaning the same individuals and entities would be taxed if it is enacted. 

The new income tax draft includes altered fiscal handling of partnerships, clear fiscal rules for investment funds aligned with Zakat, alternate tax calculation for micro taxpayers and special clauses covering residence transfer to the Kingdom, reinvestment reserves, mergers and splits, international tax discrepancies on financial instruments, and foreign tax treatment. 

To review the system, see the attachment below: