JEDDAH, 28 June — Minister of Finance and National Economy Ibrahim Al-Assaf said yesterday that the proposed income tax on expatriate workers was still being studied by the Shoura Council.
"It is too early to estimate the additional revenue to be brought in by the proposed tax ," Okaz quoted Al-Assaf as saying. The ministry is awaiting the decisions of the Shoura Council.
On an earlier occasion, the finance minister had said that the new legislation was aimed at encouraging foreign investment, as it would facilitate a cut in corporate tax on foreign companies from 45 to 30 percent.
Al-Assaf had ruled out imposing income tax on Saudi citizens or companies, but the measure would be extended to joint ventures.
Meanwhile, the minister told the fifth Arab German Economic Seminar organized by the Arab German Chamber of Commerce in Berlin yesterday that Germany was one of the top trading partners of the Arab countries with a total trade exchange of $ 30 billion last year. The Kingdom topped the list with 18 percent of the trade, Saudi Press Agency quoted him as saying.
Underlining the achievements of the Saudi-German Investment Compa-ny, an offshoot of the Saudi German Joint Commission, Al-Assaf said it paved the way for several investment opportunities to businessmen from both countries in addition to facilitating an agreement to encourage and protect investments. Efforts are also under way to avoid double taxation between the two countries.
The finance minister also said the Kingdom’s policies to diversify its industrial base have resulted in the emergence of more and more non-petroleum industries.
The Kingdom’s petroleum policy reflected its responsibility as the largest oil exporter to the international market. While striving to protect its national interests through balanced policies, the Kingdom also strives in collaboration with other petroleum producers to achieve a balanced oil market with stable prices.
He also pointed out that the Kingdom offered economic stability for the investors by keeping the rate of inflation at a minimum and a steady exchange rate while the Kingdom was not burdened by external debts.
Though the number of Saudi-German projects rose to 89 in 2001 with an investment of $320 million, these numbers did not reflect the high investment potentials of the Saudi economy.
