General Guideline

Customs Duties Consignments and parcels sent from the Zone may be allowed to enter the mainland through establishments licensed from the competent authority to carry out such activity of temporary transportation of postal consignments and parcels, given that it shall be in a suspended status for customs duties in accordance with the provisions of the Common Customs Law and the Implementing Regulations thereof, and the controls of the temporary admission of postal consignments and parcels issued by the Resolution No. (7121) dated 8 Safar 1445 AH. (Corresponding to 24/08/2023). If given consignments are sent from the Zone to the mainland and the respective customs duties are paid as well, then a refund request of customs duties paid in regard of re-exported consignments may be submitted via the website or any other means approved by the Authority, whereas the Authority will review the refund requests according to the relevant specific conditions and controls. 6.4 Record keeping and Maintenance Requirements The established entity shall keep and maintain the books and records, in addition to the audited financial statements in accordance with applicable Tax Laws and Regulations and Implementing Regulations for Zakat Collection. Provided, however, that such books, records and financial statements that the established entities in the Zone are obligated to maintain shall be separate from those books, records and financial statements of the Parent Company. In cases that given established entities, or any person related/affiliated thereto carry out certain activities other than those prescribed in the Zone inside the Kingdom, it is obligatory on such entity to maintain a separate accounts/records for Zone activities. The income shall be attributed to certain activities in accordance with Arm’s Length Principle as if such activities are completely independent from the other activities of the entity. For the purpose of compliance with tax requirements in connection with record keeping, the established entities shall apply the applicable Tax Laws and Regulations in the Kingdom and review the same to determine their obligations stipulated thereunder(23) . In accordance with the applicable laws and regulations, at least the following documents shall be kept and maintained: General journal, general ledger, inventory book, tax invoices, and other accounting records and documents necessary for the calculation of tax liability. The taxpayer shall maintain the supporting documents, and the explanatory statements and notes. The Authority (ZATCA) shall have right to request submission of additional records for purposes of registration procedures, as well as assessment and examination procedures. Given that for the purposes of Withholding Tax, the Person obligated to Withhold Tax shall submit a list containing the names and addresses of beneficiaries, from whom the tax is withholding from the amounts paid to them during given tax year to the Authority (ZATCA) at the end of given tax year. Knowing that the Person obligated to Withhold Tax shall do the latter to the extent that such information is available to them. However, ZATCA may request additional information and may make the same obligatory on the taxable persons. The Person obligated to Withhold Tax shall keep records that prove their compliance with the provisions of the Income Tax Law as well as the validity of the withholding tax. Such records shall at least contain name and address of given beneficiary, type of tax payment, its value, date, and the withholding amount(24) . The record keeping works shall be conducted electronically or via computers with strict compliance with certain conditions set out in the Implementing Regulations of Income Tax Law(25), and the VAT Implementing Regulations(26) . (23) Article fifty-eight (58) from Income Tax Law; Article fifty-six (56) from the Implementing Regulations of Income Tax Law;