GAZT completes legal requirements to implement AEOI agreements
The General Authority of Zakat and Tax (GAZT) has completed all the legal requirements to implement the Multilateral Convention on Mutual Administrative Assistance in Tax Matters ("the Convention") and the Common Reporting Standard for Automatic Exchange of Information (CRS), by publishing the administrative rules and procedures for the application of the Convention and the CRS in the “Umm Al-Qura” newspaper, issue number 4700, on Rabi' Al-Awwal 13, 1439 AH.
Publishing such rules and procedures in the country's official gazette was a must as the Finance Minister's decision No. 893 dated Safar 24, 1439 AH; November 13, 2017 stipulated that the parties concerned shall be informed with the ministerial decision approving the conventions to act accordingly as of the date of publication.
Therefore, GAZT calls on the concerned governmental bodies and financial institutions to act according to the administrative rules and procedures for the implementation of the Convention and the CRS.
Such rules and procedures are available at the GAZT website or can be accessed through this link.
As per the Royal Decree No. (D/125) dated 1/12/1438 AH, the Saudi Arabia ratified the Convention and the Common Reporting Standard. In accordance with the convention, the Kingdom’s financial institutions will be obliged to disclose information about the accounts of their individual and corporate clients who are considered residents for taxation purposes of all countries and taxation jurisdictions except for KSA and the USA with specific forms and deadlines for better international compliance. The information includes the name, address, and the account number and balance
This will apply in accordance with appropriate procedures to protect privacy and confidentiality of information exchanged under this Convention and ensure that such information is used only for the purposes of this agreement.
GAZT, in cooperation with the relevant governmental bodies, is the Saudi governmental body responsible for the implementation of the Convention and the CRS, including the supervision of the application of control procedures to ensure compliance of the stakeholders.
It is also responsible for following up violations, imposing penalties and collecting fines, in accordance with the provisions and fines stipulated in the Regulations for Treatment of Non-Disclosure of Information for Tax Purposes, issued under the Council of Ministers' Resolution No. (108) dated Safar 18, 1439 AH.