Version 3 | September 2023

Accept the Tax Ruling request If ZATCA finds that this Tax Ruling request is appropriate, accurate, full and there is no reason to reject it, ZATCA will notify the applicant with the acceptance of the request. Section 6 of this guideline contains all the details related to the procedures for accepting and refusing Tax Ruling request. 5.2 Request for additional information ZATCA shall have the right to ask for more information or documents any time upon receiving the Tax Ruling request or even after the acceptance of the request. In cases where the issue that needs to be explained is defined clearly in the Tax Ruling request but ZATCA wants to get more information and documents related to the transaction or the activity, ZATCA will ask for more information to be submitted electronically by the applicant. ZATCA grants a period for 5 days to the applicant from the date of its request for these additional information to be submitted by the applicant. Upon submitting this information, ZATCA will continue its review and analysis of the Tax Ruling request for the purpose to prepare appropriate response or reject the issuance of the request. The period for submitting this additional information to ZATCA is not included in the period for preparing Tax Ruling request. If the additional information submission period expired without providing the requested information, the ruling request will be cancelled automatically. 5.3 The rejection of Tax Ruling request- estimated reasons ZATCA may reject any Tax Ruling request at its discretion and without giving any explanation. The following provides an explanation of some of the reasons for refusing Tax Ruling request. 5.4 Cases that ZATCA shall have the right to initially reject the Issuance of the Tax Ruling A. If ZATCA deems that the validity of the Tax Ruling may rely on assumptions, whether for future event or any other issue B. If the issue contained in the request is clear and there is no doubt about it. For example, if this issue was explained and clarified in the guidelines issued by ZATCA. C. If ZATCA deems at the time of submitting the request or any time prior to the issuance of the Tax Ruling that the applicant will not complete the transaction on which the applicant requested Tax Ruling about on. D. If the request lacks sufficient considerations, information and relevant documents E. If the Tax Ruling requires ZATCA to express its opinion generally about accepted accounting principles or commercial practices F. Any other reasons deems appropriate by ZATCA (for example: any legal issue is studied or analyzed by government entity or the lack of sufficient resources to prepare the response) 5.5 Cases in which ZATCA rejects to issue the Tax Ruling after accepting the request A. If the applicant was asked by ZATCA to submit additional information regarding the ruling request and this information was not submitted to ZATCA within the additional information submission period, since the ruling request will be cancelled automatically when the granted period expired without providing the requested information. B. In case of any event after accepting the Tax Ruling, ZATCA is justified to reject the issuance of Tax Ruling. C. If ZATCA finds that there is a reason for mandatory rejection such as the Tax Ruling request should have been rejected at the time of its submission.