KPMG seminar offers insights into Saudi tax, Zakat system

KPMG Saudi Arabia recently conducted its annual tax and Zakat update seminar, which was attended by a large number of business professionals in Jeddah, Riyadh and Alkhobar.
As in previous years, the objective of the seminar was to update clients and investors on the latest developments related to application of tax and Zakat regulations in Saudi Arabia during the year.
The seminar highlighted issues such as implication of Zakat and corporate tax law, the withholding tax system and the impact of the Kingdom's double tax agreements on it.
The seminar also highlighted challenges faced by clients regarding recent updates in the customs regulations and addressed some of their main concerns relating to employee costs and amount paid to the general organization for social insurance.
Also discussed were some of the legal and regulatory updates which have taken place and their impact on business in the Kingdom.
The seminar included an interactive session during which the presenters responded to some complex questions raised by the delegates, who covered a broad spectrum of sectors across KPMG’s growing client base.
An interesting aspect of this year’s seminar included the involvement of a key KPMG client speaker who discussed his experiences in dealing with Saudi tax and Zakat matters. More significantly, two senior officials from the Department of Zakat and Income Tax (DZIT) were among attendees at the KPMG Riyadh event.
The DZIT officials who spoke very briefly, also took time to answer questions raised by attendees and were keen to highlight the more transparent and Zakat-friendly approach being adopted by the DZIT in the Kingdom.
Abdullah Hamad Al-Fozan, chairman of KPMG, said: “The tax seminar is one of the most important seminars held annually by KPMG. We are always keen to provide a clear vision that guides clients and investors in Saudi Arabia to make correct investment decisions.”
Ebrahim Baeshen, Tax and Audit Partner based in the Jeddah office, also participated in the seminars and emphasized the importance of keeping up-to-date with the updates of the Zakat and tax.
Suleman Mulla, one of the experienced tax directors and key presenters, said: "It is also important that clients are aware of their rights and obligations related to tax and Zakat in Saudi Arabia. Proper planning and maintaining of documents to support transactions is critical in ensuring a stress-free relationship with the DZIT in the Kingdom, who are more and more willing to support Zakat and taxpayers by dealing in a professional manner while ensuring that the fair share of tax and Zakat is being collected.”