KPMG Al Fozan & Partners is hosting its annual tax and zakat update seminars in Riyadh, Jeddah and Al Khobar from Feb. 28 to March 2. This year's seminars come at challenging times where the Saudi economy faces various challenges and continues to be affected by the decline in and fluctuation of oil prices. The seminars will discuss the recent plans by Saudi government to introduce Value Added Tax (VAT), which is expected to be fully implemented by the end of 2017, and how businesses should be prepared for that. The seminars will also concentrate on the latest updates in the Saudi tax and zakat regulations, including the latest on the fair pricing and transfer pricing rules, double tax treaties, the proposed zakat law and the tax imposed on undeveloped urban land designated for residential or commercial use. From a regulatory perspective, the seminar will shed light on the new companies law, which will come into effect later this year and changes in the Saudi investment environment. "The continuous decline in oil prices and the Saudi government's commitment to continue its expenditure on large infrastructure projects has resulted in significant deficit this year and over the medium term," explained Ibrahim Uboud Baeshen, Managing Partner of KPMG offices in Jeddah and Al-Khobar. "This translated into serious measures by Saudi government to protect its economic performance, including, increase in energy prices, greater efficiency in public sectors' investments as well as spending and expansion of non-oil revenue by introducing VAT and tax on underdeveloped land," he added Rupert Pease, Head of Tax at KPMG in Saudi Arabia, said "it is important that companies be aware of all the laws and the latest updates of the tax law that will go into force soon such as the new Companies Law and the VAT law. Companies need to have the right tools at hand to deal with the changes and updates and any potential impact."
