‎Royal decree to extend income tax on tax base until 2030-end

The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, has issued a royal decree amending the first two clauses of royal decree No. (M/13), as reported in the Official Gazette.

First:The tax rate stipulated in Paragraph (b) of Article 7 of the Income Tax Law, issued by Royal Decree No. (M/1) dated Muharram 15, 1425 Hijri, shall apply to the tax base of the taxpayer derived from downstream activities carried out by persons subject to tax under Paragraph (w) of Article 2 of the Law, until Dec.31, 2030.

Second:If any of the persons subject to tax — as referred to in Clause First of this Decree, fails to separate downstream activities from oil and hydrocarbon production activities by Dec. 31, 2030, tax shall be assessed in accordance with Paragraph (c) of Article 7 of the Income Tax Law, effective from Jan. 1, 2020.

The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, has issued a royal decree amending the first two clauses of royal decree No. (M/13), as reported in the Official Gazette.

First:The tax rate stipulated in Paragraph (b) of Article 7 of the Income Tax Law, issued by Royal Decree No. (M/1) dated Muharram 15, 1425 Hijri, shall apply to the tax base of the taxpayer derived from downstream activities carried out by persons subject to tax under Paragraph (w) of Article 2 of the Law, until Dec.31, 2030.

Second:If any of the persons subject to tax — as referred to in Clause First of this Decree, fails to separate downstream activities from oil and hydrocarbon production activities by Dec. 31, 2030, tax shall be assessed in accordance with Paragraph (c) of Article 7 of the Income Tax Law, effective from Jan. 1, 2020.