Saudi Arabia’s VAT implementing regulations defined

Among transactions exempted from Saudi Arabia’s Value Added Tax include loans, credit cards, mortgages and deposits and savings accounts. (Reuters)
Updated 10 November 2017
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Saudi Arabia’s VAT implementing regulations defined

RIYADH: The implementing regulations of the Value Added Tax (VAT) system has defined exempted activities in the financial sector that include many types of transactions and services, such as interest on loans or lending fees charged with an implicit profit margin.
These exempted activities include loans, credit cards, mortgages, finance leases, banknotes or securities transactions, current accounts, deposits and savings accounts. The transfer of funds from the tax has also been exempted and charged to the transfer fees.
As for the transfer of funds, the executive regulation demonstrated, as quoted by Al-Hayat newspaper, that the amount transferred is not subject to VAT, but is charged with a transfer fee of 5 percent and paid by the person who transfers the money.
The regulation specifies taxable cases of 5 percent, subject to tax at zero rated, exempt or outside the scope of the tax.
Entities engaged in economic activity subject to tax shall be entitled to recover the amount of the VAT they paid on their taxable inputs, which are related only to taxable activities by 5 percent or zero rated. Enterprises engaged in exempt economic activities are not entitled to recover the amount of VAT they have paid on their taxable inputs.
The VAT will be applied in the Kingdom on January 1, 2018 as part of the Unified Agreement for VAT in the GCC Region.
The General Authority of Zakat and Tax has invited all entities to register in the VAT through the VAT.GOV.SA website. This website provides a wide range of tools and information that is a reference to support these enterprises to ensure their readiness, along with visual aids, all the information, and general and technical FAQs that include aspects of the registration process and the willingness to apply the tax.


Jeddah has never been greener, but authorities say their work has just begun

These green spaces have become a recreational resource for residents in Jeddah. (SPA)
Updated 19 October 2018
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Jeddah has never been greener, but authorities say their work has just begun

  • Jeddah mayor: The secretariat has signed partnership agreements with the private sector and institutions for initiatives to develop parks, buildings and pedestrian walkways
  • The city has organized a number of cultural and recreational events for visitors to the parks

RIYADH: Five hundred parks in Jeddah have contributed to softening the public face presented to the world and its visitors by the Bride of the Red Sea. 

These green breathing spaces have become a resource for Jeddah locals and visitors alike. They are vital pieces in the patchwork of green spaces that are estimated to cover 20 million square meters.

Jeddah municipality has a commitment to increasing green spaces in Jeddah through garden and reforestation projects throughout the province.

The mayor of Jeddah province, Saleh Ali Al-Turki, said that the Secretariat is in the process of improving and developing the parks and increasing green spaces. 

He added that the secretariat has signed partnership agreements with the private sector and institutions for initiatives to develop parks, buildings and pedestrian walkways.

Al-Turki stressed that public parks are important elements to improve the environment and the quality of life. As such it is important to foster partnerships between the public and private sectors to develop this environmental element.

These efforts are supported by the work of Friends of Jeddah Parks, within the framework of social responsibility and with a strong partnership with governmental bodies and donors to create and care for public gardens and open spaces and benefit from them while promoting recreational, cultural, sporting, health and intellectual activities and contributing to bond with members of society.

Park expansion

The province of Jeddah has managed to expand the establishment of such parks throughout the province’s neighborhoods, taking into account the geographical scope and urban sprawl, amid strengthening the role of the private sector and civil society institutions in supporting, caring for and establishing public parks in the context of social responsibility. 

It has also succeeded in organizing a number of cultural and recreational events for the parks’ visitors, and maintaining them as a social forum for a number of families and children.

There is ongoing work to establish short- and medium-term plans to improve the parks, in addition to expanding green spaces throughout the province through implementing additional projects so that these resources are able to cater for a large number of visitors and citizens. The parks need to be maintained as social, recreational, sporting and environmental outlets.

In addition to the parks, there are recreational clubs and centers, which provide children, young people and families with playgrounds, green spaces, playgrounds, and paved areas.

Dhaban Marine Park, which is located 40km north of Jeddah, is part of the government’s initiative to provide appropriate environmental and recreational places for Jeddah’s citizens and visitors. It covers an area of 110,000 square meters along the waterfront. It is equipped with recreational facilities and football fields for children, in addition to a mosque, pathways, a versatile football field, children’s games, sandy beaches and a fishing area that includes tools and sporting equipment on the pedestrian’s walkway.

Best in Jeddah

The park’s landscaping and green areas cover 38,000 square meters with 312 palm trees, 5,000 trees and bushes, children’s play areas for 25 different sports. 

As one of the best parks in Jeddah, this is a beautiful recreational area where all family members can spend a special day and young people can benefit in a space dedicated for them. It also offers a sandy beach equipped for fishing.

Jeddah’s landmark Al-Saif Beach covers an area of 500 square kilometers and stretches over three kilometers. It was created as part of the initiative to develop the southern corniche to serve a large segment of citizens. It is equipped with public utilities to attract tourists and become an outlet for families and visitors of Jeddah.

Al-Saif Beach is a maritime façade that attracts all segments of society with its infrastructure, recreational areas and green spaces, family areas and children’s play areas. Not only does it offer public facilities such as automated smart toilets, parking lots and specialized prayer areas it also has a sandy beach for beach ball games.