SAUDI TAX ON EXPATS & CITIZENS AS VAT TAX BY JAN 2018
For the first time in the history of GCC states, Six gulf countries (Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and United Arab Emirates) are going to introduce 5% VAT(Value Added Tax) by 1st January 2018, To limit damage to competitiveness and smuggling it will be applicable regionally (GCC) at the same time . New : Saudi passed law on sin tax
- Saudi Arabia is also one in GCC States for implementing a VAT of five percent with in six months, excluding few industries of Education, Social services, Healthcare and 95 food items. Staple food items will be exempted from VAT. The decision just got final approval from the Shoura Council. Recommended : How to Register SIM card on Absher Wathiq Service
- There will be no income tax or wealth tax for individuals in the Kingdom of Saudi Arabia, But there will be VAT and sin tax is already applied last month said by Finance Minister Ibrahim Al Assaf and Deputy Crown Prince Mohammed Bin Salman. Near by Article: Sin Tax was successfully applied in Saudi from June 2017
- Taxes will benefit gulf states with an alternative source of income, A hope of raising their economies and populations with out depending on oil and gas revenue. As we seen there was a huge drop in oil prices up to 40$ a barrel in last few months. Similar : Dependent Tax is implemented in Saudi from July 2017
- As the private sectors needed a time to prepare themselves for complying with tax rules, So why the enough time will be given to them. You May Also Like : Limits of ATM Cash in Saudi Arabia
What is VAT and Sin Tax?
Value Added Tax (VAT) is a indirect tax charged on the sale of goods or services, mostly it will be included in the final sales price or MRP of products. Related Article : Sadad Payment for Permanent Family Visa
Sin Tax is a tax on products which are harmful to the society like Tobacco, Alcohol, Energy drinks, Soft drinks, Fast foods, Gambling etc,. Saudi Arabia is applied 100% and 50% Sin tax on these products starting from June 2017.