(MENAFN- Saudi Press Agency)
Riyadh, Jumada II 28, 1438, March 27, 2017, SPA -- The Custodian of Two Holy Mosques King Salman bin Abdulaziz Al Saud has ordered a package of reductions on tax regime for oil and hydrocarbon producers operating in the Kingdom of Saudi Arabia, it was reported here today.
A royal decree said that, after having reviewed a number of previous royal decrees issued in the past, the Custodian of the Two Holy Mosques ordered, first, that the price of income tax on the tax system for those authorized to operate in oil and hydrocarbon material production in the Kingdom be as follows: 50% for an investor whose capital investments in the Kingdom of Saudi Arabia amount to more than SR375 billion, 65% for an investor whose capital investments in the Kingdom of Saudi Arabia amount to more than SR300 billion up to SR375 billion, 75% for an investor whose capital investments in the Kingdom of Saudi Arabia amount to more than SR225 billion up to SR300 billion, and 85% for an investor whose capital investments in the Kingdom of Saudi Arabia amount to more than SR225 billion.
The order described the gross capital investment as the total of the accumulating value of fixed assets from the possessions, appliances, devices, machineries etc. and non-tangible assets, including the cost of operations for examination, excavation and exploration for oil and hydrocarbon and developing them. This applies before reducing the consuming and extinguishing cost.
The Custodian of the Two Holy Mosques ordered, second, that as far as tax is concerned, a capital company will receive a deduction of its contribution to the pension funds as well as the social insurance funds or any other funds established for the purpose of providing the end of service rights or compensations of workers medical expenses, provided that the multi-faceted order is valid retro-active the first of January 2017.
The order should be carried out by the concerned authorities.
--SPA
18:16 LOCAL TIME 15:16 GMT
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