The General Authority of Zakat and Tax (GAZT) continues its efforts in the area of zakat and tax, reflecting its firm commitment to the national course of development and its contribution to achieving financial sustainability that enables KSA to develop and implement medium- and long-term plans in order to attain development goals at all fields.
GAZT Adopts Pillars of National Transformation Program
General Authority of Zakat and Tax (GAZT) looks forward to being one of the best tax departments around the world and achieving the desired successes in the National Transformation Program “NTP”, which aims to achieve financial balance between revenues and expenditures in 2020. NTP includes four initiatives for GAZT:
Zakat is mandatory for business activities that aim to earn money. Zakat is also a duty on all Saudi natural persons residing in the Kingdom, those treated as GCC nationals, Saudi companies based in the Kingdom (which are treated as Saudi nationals) and shares of Saudi governmental bodies.
Income tax shall be applied on non-Saudi partners’ shares in the Saudi private sector, whether they are natural or legal persons, resident or non-resident. The law shall also be applied on non-residents, whether natural or legal, Saudi or non-Saudi through a permanent establishment therein, or income sources in the Kingdom.
FATCA is the Foreign Account Tax Compliance Act (FATCA), which involves agreements between the United States and other countries, including Saudi Arabia, to tackle international tax evasion. The aim of the agreement with the Kingdom is to facilitate Saudi financial institutions in reporting their accounts which may be subject to US taxes. GAZT is responsible for implementing activities related to FATCA in the Kingdom.