Unofficial translation of the extract in the document on VAT
Regarding the tax, His Highness said: “Of course you are talking about 15% … an agreement from the Gulf Cooperation Council that we have a value-added tax between 5 to 10% and be incentivized so that we are the lowest in the world and as you know that the Kingdom of Saudi Arabia is one-third of its population of non-Saudis.” Huge economic growth The population will grow, but the number of foreigners in the Kingdom of Saudi Arabia will also grow, which in 2030 or 2040 may reach 50% Saudis and 50% foreigners within the Kingdom of Saudi Arabia if we put value-added tax, especially with the opening of tourism and targeting 100 million A tourist in 2030 will have a very large leak of support in the Kingdom of Saudi Arabia.5% and 10% guarantee that the return that a foreigner benefits from in his consumption inside the Kingdom of Saudi Arabia belongs to the government, and the government spends it on all the benefits that the Saudi needs, whether in health, education, infrastructure, or even salaries, or other things, the 15 % Due to the pandemic and the economic challenges that the whole world faced in 2020, oil is still a major part of the income of the Kingdom of Saudi Arabia, and we saw that oil prices reached less than zero in 2020, so it was a very big challenge. Either we change everything and change all our goals and retreat in achieving our dreams for the future Or we take measures that may be harsh in a short period of time and then matters return to normal, and one of the measures in order to avoid canceling a large part of the allowances or reducing salaries and other such measures was to raise the value-added tax to 15%, indicating that this is undoubtedly. Another very painful procedure is the need for me to pain any Saudi citizen, it is in my interest for the homeland to beIt is dear and growing, and my interest is for the Saudi citizen to be satisfied every day more than the day before, but my role is also and my duty to build for him a long-term future that continues to grow and is not satisfied for three years and depleted the country’s savings and the country’s opportunities to achieve a better future. A set of decisions, including 15% value tax It is a temporary decision that may last one to five years as a maximum, and then matters will return to nature, only until we restore our balance after this pandemic and then return to the normal number, according to economic data and according to the circumstances that happen with a little, it will be within a year, and in many it will be within 5 years His Highness affirmed that there will be no income tax in the Kingdom of Saudi Arabia.
Source spa.gov.sa
