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18 September 2018 Saudi Arabia establishes appeal committees and procedures In July 2017, Articles 66 and 67 of Saudi Arabia's Income Tax Law (ITL)1 regarding appeal committees and their functions were amended through Royal Decree (RD) No. (M/113), dated 2-11-1438 AH (corresponding to Notwithstanding the amendment of ITL Articles 66 and 67 in 2017, the General Authority of Zakat and Tax (GAZT), through its Circular No 7258/16/1439 dated 25.2.1439 (14 November 2017), subsequently clarified that the original appeal procedures as set forth in ITL Articles 66 and 67 would remain in force until new appeal committees were formed in accordance with RD M/113.3 Accordingly, these specialized tax appeal committees have now been established in compliance with the RD M/113. Consequently, the amendment to ITL Articles 66 and 67 on appeal procedures is expected to become effective soon. Once the changes become effective, a tax appeal will have to be filed within 30 days (previously 60 days) and the Higher Tax Appeal Committee's decision will be considered final (previously the tax law allowed filing an appeal with the Board of Grievances – BOG). Also, the current appeal committees will no longer be hearing the pending cases. A communication regarding the formation of the specialized tax appeal committees provides for the following number of committees:
The communication does not address Zakat disputes, nor when the newly formed committees are to become operative. 2 See EY Global Tax Alert, Saudi Arabia amends tax laws relating to tax appeal procedures, dated 16 August 2017. 3 See EY Global Tax Alert, Saudi Arabia clarifies recent tax law amendments relating to tax appeal procedures, dated 20 November 2017.
Document ID: 2018-6091 |
