No VAT on loans, ATM services, says Saudi tax authority

Updated 07 December 2017
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No VAT on loans, ATM services, says Saudi tax authority

JEDDAH: The General Authority of Zakat and Tax (GAZT) on Wednesday confirmed that interest or lending fees charged with an implicit margin for finance will be exempt from value-added tax.
The authority clarified that interest or lending fees charged on loans, credit cards, mortgages, finance leasing, hire purchase products and transformations are all exempted from the VAT.
Officials of GAZT shared this information during a workshop held at its offices in Jeddah. A number of media professionals and officials of the authority attended the event.
Quashing rumors about ATM withdrawals, the GAZT officials told the workshop that customers will not be charged for withdrawing or transferring money from their accounts using ATMs. 
However, the 5-percent tax will be imposed on banks’ administrative charges such as the issuance of checkbooks, statements of accounts and safety deposit boxes and the customer will have to bear this expense.
Moreover, rental prices of residential properties, life insurance contract and issue or transfer of a debt security, equity security, or any other transferable document recognizing an obligation to pay a monetary amount to the bearer are also exempt from the VAT. 
According to VAT Project Manager Hmood Al-Harbi, zero-rated taxable supplies include medical products and equipment, exports outside GCC region, international transport, the supply of gold, silver and platinum investments, and services provided to non-residents like tourists and pilgrims.
“The value-added taxes that tourists or pilgrims pay will be refunded, laws for that are there in the executive regulations of the VAT, and they will be soon applied. We hope that the necessary regulatory structure will soon be ready, but we cannot give specific timing yet,” said Al-Harbi. 
Moreover, government services like issuance of passports and driving licenses are also exempted from the VAT. 


KSRelief to provide 5,000 Yemenis with school supplies

Saudi Arabia is ranked the first donor in the world when it comes to humanitarian financial and logistical support in Yemen. AFP
Updated 17 July 2018
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KSRelief to provide 5,000 Yemenis with school supplies

  • There are two million Yemeni children out of school because of the Houthis’ aggression against civilians
  • The total cost of all the projects provided by KSRelief since its establishment is $70 million

JEDDAH: King Salman Humanitarian Aid and Relief Center (KSRelief) has launched a project to provide Yemeni students and schools with supplies to ensure that education continues across the country despite the brutal acts of militants. The trucks started to carrying the aid from Riyadh to Yemen on Monday.

“It is a project to provide Yemen’s schools with the essential needs to ensure a better and smoother educational environment, such as chairs, desks, and boards, in addition to students’ supplies. It will support nearly 5,000 students across Yemen,” said Dr. Samer Aljetaily, spokesman for KSRelief.
“The trucks will arrive first in Ma’arib, then it will be distributed to the most needed areas across the country’s schools and students.”
“My Education” is one of the big projects given to support Yemen’s people in health, shelter, infrastructure, environment and education to help the country stand on its feet regardless of any devastation caused by the militants.
“The total cost of all the projects provided by KSRelief since its establishment is $70 million. In terms of education, the center has given financial aid to schools, paid teachers’ salaries, and provided students’ essential school needs and meals. We will continue supporting our brothers and sisters in Yemen in all sectors.”
This project has been supported by the Saudi Ministry of Education and the Saudi-led Islamic Military Coalition. “The coalition always supports our all initiatives in the interest of Yemeni citizens. The coalition will protect the aid till it arrives in Ma’arib, then it will support logistically to facilitate the distribution of the supplies. Education is a priority for the Saudi government and for KSRelief.
“We have always supported education in Yemen and always will, whether it is for schools, educational institutions, students, teachers, or even educational curricular and psychological support departments to help students become better amid all the horrific acts caused by the Houthis. KSRelief is very keen on building a strong future with a well-educated generation of Yemenis.”
Asked whether there is a lack of international support for Yemen, he told Arab News: “Saudi Arabia, along with the UAE, has attracted global attention to Yemen’s humanitarian status in different ways, including direct funding for the infrastructure of the country and huge support for health, education and the environment. Saudi Arabia is ranked the first donor in the world when it comes to humanitarian, financial and logistical support in Yemen. This has encouraged other countries’ support as well.
“The UAE has greatly supported the Yemen humanitarian file with $1 billion. The international community has reacted to this.
“However, there must be more international collaboration to reduce the militants’ attacks on the aid and supplies and facilitate the entry of aid and ensure a higher level of safety. There is also need for better cooperation to protect students and children in the militants’ controlled areas,” he emphasized.
“The Saudi Ministry of Education has supported this initiative by providing school supplies and students’ essential supplies.”
There are two million Yemeni children out of school because of the Houthis’ aggression against civilians.