General Guideline

Penalties for non-compliance 1. Introduction The Zakat, Tax and Customs Authority (the Authority) has prepared this guideline to provide the necessary clarifications and guidance for the application of the tax and customs provisions of the Special Integrated Logistics Zone «the Zone». This guideline attempts to minimize any uncertainty or ambiguity that may arise for anyone conducting economic activity in the zone. It provides details and controls for tax and customs treatment in compliance with the zone's tax and customs laws and regulations. The Authority is eager to collaborate with all individuals, but this does not preclude disagreements between the Authority and taxpayers. The Authority also confirms its responsibility in auditing and enforcing fines on individuals who violate tax and customs requirements in accordance with applicable laws and regulations. For more information regarding the application of tax, zakat, and customs laws and regulations, or special tax rules applicable in the zone in certain cases, contact the Authority through the channels designated for that purpose to request the issuance of a Tax Ruling (1). (1) For information on whether a person is qualified to request a Tax Ruling from the Authority, refer to the guidance on requests for Tax Ruling available on the Authority›s website via the link provided here. 2. Definitions of key terms Authority/ZATCA: Zakat, Tax and Customs Authority. Competent Authority: General Authority of Civil Aviation (GACA). Kingdom: Kingdom of Saudi Arabia. The Unified Value-added Tax Agreement: The Unified Value-added Tax Agreement for the Cooperation Council for the Arab states of the Gulf. VAT Law: The Value Added Tax Law promulgated by Royal Decree No. (M/113) dated 2 Dhul Qa’dah 1438 H, and any amendments thereto, or any other law that replaces it. Income Tax Law: The Income Tax Law promulgated by Royal Decree No. (M/1) dated 15 Muharram 1425 H, and any amendments thereto, or any other law that replaces it. The Implementing Regulations for Zakat Collection: The Implementing Regulations for Zakat Collection issued by Ministerial Resolution No. (1007) dated 19th Sha’ban 1445 AH, and any amendments thereto, or any other law that replaces it. Common Customs Law: The Common Customs Law for the Gulf Cooperation Council coun- tries approved by Royal Decree No. (M/41) dated 3 Dhul Qa’dah 1423 AH, and its implementing regulations and any amendments thereto, or any other law that replaces it. The Customs regulations applicable in the Special Integrated Logistics Zone: Rules and conditions of customs procedures and operations in the Special Integrated Logistics Zone. Investment Regulations: Investment regulations of the Special Integrated Logistics Zone. Zone Statute: The Statute of Special Integrated Logistics Zone issued by Royal Decree No. (A/17), dated 01 Safar 1440 AH. Special tax Rules: Tax rules applicable in the Special Integrated Logistics Zone. Transfer Pricing bylaws: Transfer Pricing bylaws issued pursuant to the Authority’s Board of Directors Resolution No. (6-1-19) dated 25 Jumada I 1440 AH and any amendments thereto or their replacement.