The Board of Directors of the Saudi Zakat, Tax and Customs Authority approved the amendments to the transaction pricing instructions, as the transaction pricing instructions for taxpayers who are subject to zakat levy will come into effect for the fiscal years beginning on or after January 1, 2024.
And according to the decision published by the official “Umm Al-Qura” newspaper in its issue issued yesterday, Friday, the provisions of the advance pricing agreements “APA” will enter into force on the tax or zakat years that begin on or after January 1, 2024.
The decision added, “Except for what is expressly stated in the transaction pricing instructions, the provisions of Articles 16 and 17 are applied to taxpayers subject to zakat collection.”
And the report continued: “The first stage includes all taxpayers subject to zakat collection, with the exception of financing funds, and the pricing of transactions of 100 million Saudi riyals or more will be mandatory, while more than 48 million is optional, while pricing does not apply to transactions of 48 million riyals or less.”
The decision indicated that the implementation of the second phase will be three years after the implementation of the first phase, and the pricing will be for transactions whose value is more than 48 million riyals, while the decision does not apply to transactions with a value of 48 million riyals or less.
